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HomeMy WebLinkAbout12/11/2018 - Regular - PacketMayor: Rob Putaansuu Administrative Official Councilmembers: Bek Ashby Chair: ED/Tourism/LT Committee Staff: Development Director Finance Committee KRCC / PSRC TransPol / KRCC TransPol KRCC PlanPol-alt / PRTPO Shawn Cucciardi Finance Committee Land Use Committee PSRC EDD-alt Fred Chang Utilities Committee Sewer Advisory Committee (SAC) Staff: Public Works Director Jay Rosapepe ED/Tourism/LT Committee Utilities Committee Chair: Lodging Tax Committee Sewer Advisory Committee (SAC) KRCC-alt / KRCC TransPol-alt Kitsap Transit-alt John Clauson Chair: Finance Committee Staff: Finance Director Kitsap Public Health District-alt KEDA/KADA-alt Cindy Lucarelli Chair: Utilities and SAC Committee Staff: Public Works Director Chair: Chimes and Lights Committee Staff: City Clerk KEDA/KADA Scott Diener (Mayor Pro-Tempore) Chair: Land Use Committee Staff: Development Director ED/Tourism/LT Committee PSRC Growth Mgmt-a It Department Directors: Nicholas Bond, AICP Development Director Mark Dorsey, P.E. Director of Public Works/City Engineer Tim Drury Municipal Court Judge Noah Crocker, M.B.A. Finance Director Geoffrey Marti Police Chief Brandy Rinearson, MMC, CPRO City Clerk Contact us: 216 Prospect Street Port Orchard, WA 98366 (360) 876-4407 City of Port Orchard Council Meeting Agenda December 11, 2018 6:30 p.m. 1. CALL TO ORDER A. Pledge of Allegiance 2. APPROVAL OF AGENDA 3. CITIZENS COMMENTS (Please limit your comments to 3 minutes for items listed on the Agenda and that are not for a Public Hearing. When recognized by the Mayor, please state your name for the official record) 4. CONSENT AGENDA (Approval of Consent Agenda passes all routine items listed below, which have been distributed to each Councilmember for reading and study. Consent Agenda items are not considered separately unless a Councilmember so requests. In the event of such a request, the item is returned to Business Items.) A. Approval of Checks, Payroll, and Electronic Payments B. Adoption of a Resolution Adopting the 2019 City Council Meeting Schedule (Mayor) Page 3 C. Approval of a Contract with Viking Fence for the Active Club Fence Repair (Dorsey) Page 7 D. Approval of a Contract with Kitsap County Prosecuting Attorney for Prosecution of Municipal Criminal Complaints and Civil Infractions (Rinearson) Page 31 E. Approval of a Contract with Gordon Thomas Honeywell -Governmental Affairs for Lobbying Services (Rinearson) Page 43 F. Approval of Amendment No. 1 to Contract 002-18 with Kitsap County for Incarceration of Prisoners (Marti) Page 55 G. Approval of Amendment No. 1 to Contract No. 096-16 with Kitsap Community Resources for the Community Service Worker Program (Cates) Page 61 S. PRESENTATION A. Kitsap Economic Development Alliance (Powers) 6. PUBLIC HEARING 7. BUSINESS ITEMS A. Adoption of a Resolution Confirming Mayoral Appointments to Boards and Commissions (Mayor) Page 71 B. Adoption of a Resolution Approving a Contract with Schneider Eauipment, Inc. dba Schneider Water Services for the Well 13 Drillini? Project (Dorsey) Page 75 C. Adoption of a Resolution Approving a Contract with Scarsella Brothers. Inc. for the Well 13 Site Preparation Project (Dorsey) Page 123 D. Approval of Addendum No. 1 to Contract No. 053-18 with Waterman Investment Partners. LLC for 640 Bay Street Purchase and Sale Agreement (Mayor) Page 165 E. Approval of the November 20, 2018, Council Work Study Session Minutes Page 191 F. Approval of the November 27, 2018, Council Meeting Minutes Page 197 8. REPORTS OF COUNCIL COMMITTEES 9. REPORT OF MAYOR "l113d►viLPLN9:WI I—LI 11. CITIZEN COMMENTS (Please limit your comments to 3 minutes for any items not up for Public Hearing. When recognized by the Mayor, please state your name for the official record) 12. EXECUTIVE SESSION: Pursuant to RCW 42.30.110, the City Council may hold an executive session. The topic(s) and the session duration will be announced prior to the executive session. 13. ADJOURNMENT COMMITTEE MEETINGS Finance Economic Development and Tourism Utilities Sewer Advisory Land Use Lodging Tax Advisory Festival of Chimes & Lights Holiday Tour Outside Agency Committees Date & Time Location TBD City Hall December 10, 2018; 9:30am City Hall December 17, 2018; 9:30am City Hall January 16, 2019; 6:30pm City Hall January 7, 2019; 9:30am DCD* TBD City Hall December 17, 2018; 3:30 pm City Hall December 17, 2018; 5:00 pm City Hall Varies Varies *DCD, Department of Community Development, 720 Prospect Street, Port Orchard CITY COUNCIL GOOD OF THE ORDER Please turn off cell phones during meeting and hold your questions for staff until the meeting has been adjourned. The Council may consider other ordinances and matters not listed on the Agenda, unless specific notification period is required. Meeting materials are available on the City's website at: www.cityofportorchard.us or by contacting the City Clerk's office at (360) 876-4407. The City of Port Orchard does not discriminate on the basis of disability. Contact the City Clerk's office should you need special accommodations. December 11, 2018, Meeting Agenda Page 2 of 2 City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Consent Agenda 413 Subject: Adoption of a Resolution Adopting the 2019 City Council Meeting Schedule Back to Agenda Meeting Date: December 11, 2018 Prepared by: Robert Putaansuu Mayor Atty Routing No.: Atty Review Date N/A N/A Summary: Pursuant to POMC 2.04.010 Meeting Time and Place, the City Council shall hold a minimum of one meeting per month. The City Council shall determine the annual schedule for these meetings for the next calendar year no later than the last regular business meeting of the preceding calendar year. Recommendation: Staff recommends adoption of a Resolution, adopting the 2019 City Council meeting schedule as presented. Relationship to Comprehensive Plan: None Motion for consideration: I move to adopt a Resolution adopting the 2019 City Council meeting schedule as presented. Fiscal Impact: N/A Alternatives: N/A Attachments: Resolution. Page 3 of 202 Back to Agenda This Page Intentionally Left Blank Page 4 of 202 Back to Agenda RESOLUTION NO. A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, ADOPTING THE 2019 CITY COUNCIL MEETING SCHEDULE PURSUANT TO POMC 2.04.010 MEETING TIME AND PLACE. WHEREAS, on July 11, 2017, City Council adopted Ordinance No. 026-17 which adopted the classification of noncharter code city for the City of Port Orchard; and WHEREAS, certain updates of the Port Orchard Municipal Code were needed; and WHEREAS, on October 24, 2017, City Council adopted Ordinance No. 038-17 which amends certain provisions of Chapter 2.04.010 Meeting Time and Place by stating the city council shall hold a minimum of one meeting per month. The city council shall determine the annual schedule for these meetings for the next calendar year no later than the last regular business meeting of the preceding calendar year; and WHEREAS, City Council typically will meet for regular business meetings the 2"d and 4t" Tuesday of each month, with a work study meeting the 3rd Tuesday of each month; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: The 2019 city council meeting calendar shall be adopted, and meetings shall be held on: January 81", 151", and 22nd February 121" 191" and 261". March 12tn 19t" 26tn April 9t", 16t", and 23rd May 14t" 21St and 28tn June 11t" 18t" and 25t". July 9t", 16t", and 23rd. August 13t", and 20tn September 10t" 17t" and 24tn October 8t", 15t", and 22n1 November 12t" 19t" and 26t". December 10t", and 17t". PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested by the City Clerk in authentication of such passage this 11t" day of December 2018. ATTEST: Brandy Rinearson, MMC, City Clerk Robert Putaansuu, Mayor Page 5 of 202 Back to Agenda This Page Intentionally Left Blank Page 6 of 202 Back to Agenda (Ink, WCity of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No. Consent Agenda 4C Meeting Date Subject Approval of a Contract with Viking Fence Prepared by for the Active Club Fence Repair December 11, 2018 Mark Dorsey, P.E. Public Works Director Atty Routing No: N/A Atty Review Date: N/A Summary: On August 20, 2018 a driver struck the basketball hoop post and fence surrounding the basketball court located at the Active Club. The City requested a quote from Viking Fence to repair the damaged hoop and fence. Repairs totaled $12,185.96 (including tax) and as this total is under the threshold and qualifies for minimal competition, the City decided to enter into contract with Viking Fence. Recommendation: Staff recommends that the City Council authorize the Mayor to execute Contract No. C080-17 with Viking Fence for 1025 Tacoma Avenue (Active Club) accident related fence and post repairs for $12,185.96 (including tax). Relationship to Compressive Plan: None. Motion for Consideration: I move to authorize the Mayor to execute a contract with Viking Fence for 1025 Tacoma Avenue (Active Club) accident related fence and post repairs for $12,185.96 (including tax). Fiscal Impact: Insurance will reimburse the City for this event. Alternatives: None Attachments: Contract. Page 7 of 202 Back to Agenda This Page Intentionally Left Blank Page 8 of 202 Back to Agenda and CITY OF PORT ORCHARD SMALL WORKS 35K AND UNDER CONSTRUCTION CONTRACT NO. C080-17 PUBLIC WORKS PROJECT NO.2018-028 THIS Agreement is made effective as of the 1 lth day of December, 2018, by and between CITY OF PORT ORCHARD, WASHINGTON ("CITY") 216 Prospect Street Port Orchard, Washington 98366 Contact: Mayor Robert Putaansuu Phone: 360.876.4407 Fax: 360.895.9029 VIKING FENCE CO. ("CONTRACTOR") 3450 State Hwy 3 Bremerton, WA 98312 Contact: Lloyd Sjoberg Phone: 360.373.7918 Email: info@vikingfenceinc.com for the following Project: Fence Repair at 1025 Tacoma Ave (Active Club) ("PROJECT") The City and Contractor agree as follows: 1. Contract Documents. The Contractor shall complete the Work described in the Contract Documents for the Project. The following documents are collectively referred to as the "Contract Documents": a. This Agreement signed by the City and the Contractor; b. Division 1 of WSDOT Standard Specifications for Road, Bridge and Municipal Construction, 2018 edition, together with APWA Supplement (1-99), subject to specific provisions contained within the Public Works Terms and Conditions; c. The attached Special Provisions, Plans and Specifications; d. Written change orders or orders for minor changes in the Work issued after execution of this Agreement; e. Public Works Terms and Conditions; f. Insurance and Bonding Requirements; and g. The bid proposal submitted by the Contractor, except when inconsistent with Contract Documents a-f. City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 PagePage 3of 202 The intent of the Contract Documents is to include all items necessary for the proper execution and completion of the Work by the Contractor. These Contract Documents complement each other in describing a complete work. Any requirement in one document binds as if stated in all. The Contractor shall provide any work or materials clearly implied in the Contract even if the Contract does not mention it specifically. 2. Date of Commencement and Substantial Completion Date. The date of commencement shall be December 121h 2018. The Contractor shall substantially complete the Work not later than January 16th 2019, subject to adjustment by change order. 3. The Contractor shall do all work and furnish all tools, materials, and equipment in accordance with the above described Construction Contract Documents. The Contractor shall provide and bear the expense of all equipment, work, and labor of any sort whatsoever that may be required for the transfer of materials and for constructing and completing of the work provided for in these Construction Contract Documents, except those items mentioned therein to be furnished by the City. 4. Subject to additions and deductions by change order, the construction Contract Sum is the base bid amount of $12,185.96 including applicable sales tax. The construction Contract Sum shall include all items and services necessary for the proper execution and completion of the work. The City hereby promises and agrees with the Contractor to employ, and does employ the Contractor to provide the materials and to do and cause to be done the work described in the Construction Contract Documents and to complete and finish the same according to the plans and specifications and the terms and conditions herein contained; and hereby contracts to pay for the same at the time and in the manner and upon the conditions provided for in this Contract. 5. The Contractor agrees to comply with all state and federal laws relating to the employment of labor and wage rates to be paid. The Contractor agrees to furnish insurance of the types and in the amounts set forth in the Construction Contract Documents. 6. The Contractor agrees to repair and replace all property of the City and all property of others damaged by himself, his employees, and sub -contractors. 7. The Contractor for himself and for his heirs, executors, administrators, successors, and assigns, does hereby agree to the full performance of all the covenants herein upon the part of the Contractor. 8. It is further provided that no liability shall attach to the City of Port Orchard by reason of entering into this Construction Contract, except as expressly provided herein. IN WITNESS WHEREOF, the parties hereto have caused this contract to be duly executed on the date first written above. City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Pag�a o'l; of 202 CITY OF PORT ORCHARD CONTRACTOR Robert Putannsuu, Mayor ATTEST/AUTHENTICATE : Brandy Rinearson, MMC, City Clerk APPROVED AS TO FORM: Sharon Cates, City Attorney City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Lo Its: Rev 1/29/18 Pag�a o'l; of 202 CERTIFICATE AS TO CORPORATE PRINCIPAL I, (Corporate Officer (Not Contract Signer)) certify that I am the (Corporate Title) of the corporation named as the Contractor in the Agreement attached hereto; that , (Contract Signer) who signed said Agreement on behalf of the Contractor, was then (Corporate Title) of said corporation; that said Agreement was duly signed for and in behalf of said corporation by authority of its governing body, and is within the scope of its corporate powers. Corporate Seal Corp. officer signature (not contract signer) Printed Title State of ) County of ) , (corporate officer (not contract signer)) being duly sworn, deposes and says that he/she is (Corporate Title) of (Name of Corporation) Subscribed and sworn to before me this day of 20 City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Notary Public (Signature) Notary Public (Print) My commission expires Rev 1/29/18 Page, gef1 of 202 CITY OF PORT ORCHARD PUBLIC WORK PROJECT TERMS AND CONDITIONS The following terms and conditions shall be used in conjunction with the Standard Specifications for Road, Bridge and Municipal Construction, 2018 edition, together with the APWA Supplement (Section 1-99), as issued by the Washington State Department of Transportation and American Public Works Association, Washington State Chapter, hereinafter referred to as the "standard specifications". The standard specifications, except as they may be modified or superseded by these provisions, shall govern all phases of work under this Contract, and they are by reference made an integral part of these specifications and Contract as if herein fully set forth. When the provisions of the standard specification conflict with the terms and conditions as contained herein, the terms and conditions shall prevail. 1. BID PRICE: The bid price(s) shall include all necessary fees and items of labor, material, equipment, tools, overhead and compensation, supplies, taxes, utilities and other incidentals necessary to complete the work in a fully functional and operational state. All prices including bid prices are in US funds. 2. DEFINITIONS: The term "City" means Port Orchard, Washington, "successful bidder" means the apparent lowest and best responsible bidder to whom an award is made, and "Contractor" means the successful bidder who has satisfied the requirements for the award and who receives a contract executed by the City. "Bidder" means the person, firm or corporation that has made an offer in response to the invitation to bid. "Work" means the construction and services required by the Contract Documents, whether completed or partially completed, and includes all other labor, materials, equipment and services provided or to be provided by the Contractor to fulfill the Contractor's obligations. 3. LICENSING AND REGISTRATION: The Contractor must have a Washington State certificate of registration per chapter 18.27 RCW; a current state unified business identifier number; and if applicable, industrial insurance coverage for the bidder's employees working in Washington, an Employment Security Department number, and a state excise tax registration number. In addition, the bidder must not be disqualified from bidding on any public works contracts under RCW 39.06.010 or 39.12.065(3). 4. PUBLIC WORK REQUIREMENTS: This project constitutes a public work under state law. Bidders are warned to take into consideration statutory legal requirements, particularly, the payment of prevailing wages and fringe benefits, payment and performance bonds and sales tax implications in making their bids. It is the sole responsibility of the bidder to insure that the appropriate labor classification(s) are identified and that the applicable wage and benefit rates are taken into consideration when preparing their bid according to these specifications. The Contractor shall complete and file State of Washington, Department of Labor & Industries, Statement of Intent to Pay Prevailing Wages and Affidavit of Wages Paid forms and shall familiarize itself with their requirements. The Contractor shall also be responsible for and pay all costs pertaining to the processing of these forms. 5. INSURANCE REQUIREMENT: The successful bidder will furnish insurance as stipulated in the Attachment entitled "Insurance Requirements." 6. RECEIPT OF ADDENDA: All official clarifications or interpretations of the bid documents will be by written addenda only. City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Pag�ag°ef1 of 202 7. PROJECT COMPLIANCE: In compliance with the request for quotation, Bidder hereby proposes to perform all work for this project in strict accordance with the Contract Documents, at the Contract Sum, and within the time set forth herein with the understanding that time is of the essence in the performance of this Contract. 8. TAXES: Proposals shall include all applicable taxes except sales tax, which is a separate bid item. It shall be the Bidder's responsibility to furnish Federal Excise Tax Exemption Certificate, when applicable. 9. ERROR IN EXTENSION: Unit price, when used, shall govern in case of extension error. 10. PERMITS AND FEES: The City shall furnish all permits required in the performance of this Contract. The contractor shall furnish all inspection fees, and fees required in the performance of this Contract, including those charged under RCW 39.12.070 by the Department of Labor and Industries for the approval of statements of intent to pay prevailing wages and the certification of affidavits of wages paid, etc. The Department may also charge fees to persons or organizations requesting the arbitration of disputes under RCW 39.12.060. The Contractor is responsible for all fees resulting from these statutes. 11. CONTRACT: The Contract, when properly signed, will be the only form that will be recognized by the City as an award. The executed Contract supersedes all previous communications and negotiations, except as referenced herein, and constitutes the entire agreement between the City and Contractor (parties), except as provided herein. The Contractor shall not make any changes, alterations, or variations in the terms of the Contract without the written consent of the City. No terms stated by the Bidder in its proposal shall be binding on the City unless accepted in writing by the City. The successful bidder may not assign the Contract resulting from this invitation to bid without the City's prior written consent. No waiver by the City of a breach of any provision of the terms and conditions outlined in the invitation to bid shall constitute a waiver of any other breach of such provision or of any other provisions. 12. CHANGE ORDERS: If the City or the Contractor requests a change in the Work, or either party believes that a change is necessary, then the parties shall comply with the following procedure to document and reflect a change in the Work: (a) The party requesting the change shall write a description of the change and give the description to the other party (the "Change Notice"); (b) Before proceeding with the change in Work, unless otherwise excused by emergency, the Contractor shall provide the City with a fixed -price written estimate of the cost and time impact of the change in Work; and (c) The City and the Contractor shall execute a Change Order confirming their agreement as to the change in Work, the fixed -price cost, and the extension of the Substantial Completion Date, if any. If the change in Work cannot be performed on a fixed -price basis, the Change Order shall identify the agreed method of compensation. 13. CHANGE DIRECTIVES: A "Change Directive" is a written order signed by the City, directing a change in the Work prior to agreement on adjustment, if any, in the Contract Sum or Substantial Completion Date, or both. The City may by Change Directive, without invalidating the Contract, order changes in the Work within the general scope of the Contract consisting of additions, deletions or other revisions, the Contract Sum and Substantial Completion Date being adjusted accordingly. A Change Directive shall only be used in the absence of total agreement on the terms of a Change Order. Upon receipt of a Change Directive, the Contractor shall promptly proceed with the change in the Work and advise the City of its agreement or disagreement with the proposed method for determining the proposed adjustment in the Contract Sum and/or Substantial Completion Date, if any, provided in the Change Directive. A Change Directive City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Pag�6 o l of 202 signed by the Contractor indicates agreement with all terms set forth in the Change Directive. Such agreement shall be effective immediately and shall be recorded as soon as practical with a Change Order. If the parties are unable to agree on an adjustment to the Contract Sum and/or Substantial Completion Date, if any, then either party may submit the matter for determination in accordance with Section 21. 14. MINOR CHANGES IN THE WORK: The City shall have the authority to order minor changes in the Work not involving adjustment in the Contract Sum or extension of the Substantial Completion Date and not inconsistent with the Contract documents. The Contractor shall promptly carry out such written orders for minor changes in the Work. 15. COMPLIANCE WITH LAWS AND REGULATIONS: The Contractor warrants full compliance with all applicable local, state or federal laws and regulations and agrees to indemnify and defend the City against any loss, cost, liability or damage, including reasonable attorney's fees, by reason of successful bidder's violation of this paragraph. 16. INDEMNIFICATION: All services to be rendered or performed under this Contract will be rendered or performed entirely at the Contractor's own risk. The Contractor shall defend, indemnify and hold the City, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Contract, except for injuries and damages caused by the sole negligence of the City. Should a court of competent jurisdiction determine that this Contract is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the City, its officers, officials, employees and volunteers, the Contractor's liability hereunder shall be only to the extent of the Contractor's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Contractor's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Contract. 17. TERMINATION: This Contract may be terminated in whole or in part, without penalty, under the following conditions: 1) by mutual written agreement; 2) by the City for breach by the Contractor of any of the obligations or requirements set forth in the Contract Documents which would, at the option of the City, require the Contractor to assume liability for any and all damages, including the excess of re -procuring similar products or services; 3) for convenience of the City; or 4) by the City for non -appropriation of funds. 18. TERMINATION BY THE CITY WITHOUT CAUSE: Notwithstanding any other provisions contained herein, the City, without cause, may terminate the Contract between the parties by providing notice to the Contractor. Upon termination under this section: 1) All remaining obligations of the parties are discharged, but any right based upon breach or performance occurring prior to termination survives; 2) If the reasonable costs of performance incurred by the Contractor prior to termination exceed the amount paid by the City to the Contractor on the Contract Sum, the City shall reimburse the Contractor in the amount of such excess; 3) If the amount paid by the City to the Contractor on the Contract Sum exceeds the reasonable costs of performance incurred by the Contractor prior to termination, the Contractor shall reimburse the City in the amount of such excess; and 4) Any funds obtained or retained by the Contractor as provided in subsections 2) or 3), above, shall constitute full payment and consideration for the services performed by the Contractor prior to termination. City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Page, gef1 of 202 19. COMPLIANCE WITH TERMS: The City may at any time insist upon strict compliance with these terms and conditions, not withstanding any previous custom, practice, or course of dealing to the contrary. 20. PAYMENT: Contractor shall maintain time and expense records and provide them to the City along with monthly invoices in a format acceptable to the City for work performed to the date of the invoice. All invoices shall be paid by the City within 45 days of receipt of a proper invoice. If the services rendered to not meet the requirements of the Contract, Contractor will correct or modify the work to comply with the Contract. City may withhold payment for such work until the work meets the requirements of the Contract. 21. DISPUTE RESOLUTION: In the event there is a dispute between the parties, the parties agree to resolve that dispute in the following manner: (a) The parties shall attempt in good faith to resolve any dispute promptly through negotiation. Either party may give the other party written notice that a dispute exists (a "Notice of Dispute"). The Notice of Dispute shall include a statement of such party's position. Within ten (10) days of the delivery of the Notice of Dispute, the parties shall meet at a mutually acceptable time and place and attempt to resolve the dispute; (b) If the parties are unable to resolve the dispute, they may elect to submit the dispute to mediation. The cost of the mediation shall be borne equally by the parties. The mediator shall be selected by the mutual agreement of the parties; (c) If the mediation does not result in a settlement of the dispute, the dispute shall be settled by binding arbitration by the Judicial Arbitration and Mediation Services ("JAMS") in accordance with the then operative construction rules of JAMS. The parties may select an arbitrator by mutual agreement, or if unable to agree, the arbitrator will be selected pursuant to the rules of JAMS. The parties shall be bound by the decision of such arbitrator. The arbitration shall be conducted in Kitsap County, Washington; provided, if JAMS is unable to conduct the arbitration in Kitsap County, then the arbitration shall be held in such location as the parties may agree after consulting with JAMS. City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Pag�,age o'l of 202 CITY OF PORT ORCHARD INSURANCE REQUIREMENTS The Contractor shall procure and maintain for the duration of the Contract with the City, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, their agents, representatives, employees and subcontractors. No Limitation. The Contractor's maintenance of insurance, its scope of coverage and limits as required herein shall not be construed to limit the liability of the Contractor to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. Minimum Scope of Insurance. The Contractor shall obtain insurance of the types described below: • Automobile Liability insurance covering all owned, non -owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. • Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, stop gap liability, independent contractors, products -completed operations, personal injury and advertising injury and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide the Aggregate Per Project Endorsement ISO form CG 25 03 11 85 or an equivalent endorsement. There shall be no endorsement or modification of the Commercial General Liability Insurance for liability arising from explosion, collapse or underground property damage. The City shall be named by endorsement as an additional insured under the Contractor's Commercial General Liability insurance policy with respect to the work performed for the City using ISO Additional Insured endorsement CG or substitute endorsements providing equivalent coverage. • Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. • Builders Risk insurance covering interests of the City, the Contractor, Subcontractors, and Sub -subcontractors in the work. Builders Risk insurance shall be on an all-risk policy form and shall insure against the perils of fire and extended coverage and physical loss or damage including flood, earthquake, theft, vandalism, malicious mischief, collapse, temporary buildings and debris removal. The Builders Risk insurance covering the work will have a deductible of $5,000 for each occurrence, which will be the responsibility of the Contractor. Higher deductibles for flood and earthquake perils may be accepted by the City upon written request by the Contractor and written acceptance by the City. Any increased deductibles accepted by the City will remain the responsibility of the City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 PaQ of14 of 202 Contractor. The Builders Risk insurance shall be maintained until final acceptance of the work by the City. • Employer's Liability insurance limit of $1,000,000 each accident, Employer's Liability Disease each employee $1,000,000 and Employer's Liability Disease — Policy limit $1,000.000. Minimum Amounts of Insurance. The Contractor shall maintain the following insurance limits: • Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000.000 per accident. • Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate and a $2,000,000 products - completed operations aggregate limit. • Builders Risk insurance shall be written in the amount of the completed value of the project with no coinsurance provisions. Other Insurance Provisions. The Contractor's Automobile Liability, Commercial General Liability and Builders Risk insurance policies are to contain, or be endorsed to contain that they shall be primary insurance as respects the City. Any insurance, self-insurance or insurance pool coverage maintained by the City shall be excess of the Contractor's insurance and shall not contribute with it. If any coverage is written on a "claims made" basis, then a minimum of three (3) year extended reporting period shall be included with the claims made policy, and proof of this extended reporting period provided by the City. Contractor's Insurance for Other Losses. The Contractor shall assume full responsibility for all loss or damage from any cause whatsoever to any tools, including but not limited to the Contractor's employee -owned tools, machinery, equipment or motor vehicles owned or rented by the Contractor, or the Contractor's agents, suppliers or contractors as well as any temporary structures, scaffolding and protective fences. Waiver of Subrogation. The Contractor waives all rights against the City, any of its Subcontractors, Sub -subcontractors, agents and employees, for damages caused by fire or other perils to the extent covered by Builders Risk insurance or other property insurance obtained pursuant to this Insurance Requirements Section of the Contract or other property insurance applicable to the work. The Contractor's insurance shall be endorsed to waive the right of subrogation against the City, or any self-insurance, or insurance pool coverage maintained by the City. The City will not waive its right to subrogation against the Contractor. The Contractor's insurance shall be endorsed acknowledging that the City will not waive its right to subrogation. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating of not less than ANII. City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 PagYageoWlf 202 Verification of Coverage. The Contractor shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the Automobile Liability and Commercial General Liability insurance of the Contractor before commencement of the work. Before any exposure to loss may occur, the Contractor shall file with the City a copy of the Builders Risk insurance policy that includes all applicable conditions, exclusions, definitions, terms and endorsements related to this project. Subcontractors. The Contractor shall have sole responsibility for determining the insurance coverage and limits required, if any, to be obtained by subcontractors, which determination shall be made in accordance with reasonable and prudent business practices. Notice of Cancellation. The Contractor shall provide the City and all Additional Insureds for this work with written notice of any policy cancellation, within two business days of their receipt of such notice. Failure to Maintain Insurance. The insurance required by this Section will not be canceled, materially changed or altered without forty-five (45) days prior written notice submitted to the City. Failure on the part of the Contractor to maintain insurance as required shall constitute a material breach of contract, upon which the City may, after giving five business days' notice to the Contractor to correct the breach, immediately terminate the Contract, or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Contractor from the City. City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 PagYage 1 64 202 CITY OF PORT ORCHARD DECLARATION OF OPTION FOR PERFORMANCE BOND OR ADDITIONAL RETAINAGE (APPLICABLE TO CONTRACTS OF $150,000 OR LESS — RCW 39.08.010) Note: This form must be submitted at the time the Contractor executes the Contract. The Contractor shall designate the option desired by checking the appropriate space. The Contractor elects to: (1) Furnish a performance bond in the amount of the total contract sum. An executed performance bond on the required form is included with the executed contract documents. (2) Have the City retain, in lieu of the performance and payment bonds, ten percent (10%) of the total contract amount for a period of thirty days after date of final acceptance, or until receipt of all necessary releases from the department of revenue and the department of labor and industries and settlement of any liens filed under chapter 60.28 RCW, whichever is later. RCW 39.08.010. In choosing option 2, the Contractor agrees that if the Contractor, its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract, and shall faithfully perform all the provisions of such Contract and shall also well and truly perform and fulfill all the undertakings, covenants, terms, conditions and agreements of any and all duly authorized modifications of the Contract that may hereafter be made, at the time and in the manner therein specified, and shall pay all laborers, mechanics, subcontractors, and materialmen, and all persons who shall supply such person or persons, or subcontractors, with provisions and supplies for the carrying on of such work, on his or her part, and shall defend, indemnify, and save harmless the City of Port Orchard, Washington, its officers and agents from any claim for such payment, then the funds retained in lieu of a performance bond shall be released at the time provided in said option 2; otherwise, the funds shall be retained until the Contractor fulfills the said obligations. City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Contractor Signature, Date Bond No. Rev 1/29/18 PagePlage f�of 202 PERFORMANCE AND PAYMENT BOND CITY OF PORT ORCHARD 1025 TACOMA AVE FENCE REPAIR CONTRACT NO. — C080-18 Bond to City of Port Orchard, Washington Bond No. We, , and , (Principal) (Surety) a Corporation, and as a surety corporation authorized to become a surety upon Bonds of Contractors with municipal corporations in Washington State, are jointly and severally bound to the City of Port Orchard, Washington ("Owner"), in the penal sum of Dollars ($ ), the payment of which sum, on demand, we bind ourselves and our successors, heirs, administrators, executors, or personal representatives, as the case may be. This Performance Bond is provided to secure the performance of Principal in connection with a contract dated , 20_, between Principal and Owner for a project entitled 1025 Tacoma Ave Fence Repair Contract No. C080-18 ("Contract"). The initial penal sum shall equal 100 percent of the Total Bid Price, including sales tax, as specified in the Proposal submitted by Principal. NOW, THEREFORE, this Performance and Payment Bond shall be satisfied and released only upon the condition that Principal: Faithfully performs all provisions of the Contract and changes authorized by Owner in the manner and within the time specified as may be extended under the Contract; Pays all laborers, mechanics, subcontractors, lower tier subcontractors, material persons, and all other persons or agents who supply labor, equipment, or materials to the Project; and • Pays the taxes, increases and penalties incurred on the Project under Titles 50, 51 and 82 RCW on: (A) Projects referred to in RCW 60.28.01l(1)(b); and/or (B) Projects for which the bond is conditioned on the payment of such taxes, increases and penalties. The surety shall indemnify, defend, and protect the Owner against any claim of direct or indirect loss resulting from the failure: Of the Principal (or any of the employees, subcontractors, or lower tier subcontractors of the Principal) to faithfully perform the contract, or Of the Principal (or any subcontractor or lower tier subcontractor of the Principal) to pay all laborers, mechanics, subcontractors, lower tier subcontractors, material person, or any other person who provides supplies or provisions for carrying out the work. The liability of Surety shall be limited to the penal sum of this Performance and Payment Bond. Principle and Surety agree that if the Owner is required to engage the services of an attorney in connection with enforcement of this bond each shall pay the Owner reasonable attorney's fees, whether or not suit is commenced, in addition to the penal sum. City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 PagYageo olf 202 No change, extension of time, alteration, or addition to the terms of the Contract or to the Work to be performed under the Contract shall in any way affect Surety's obligation on the Performance Bond. Surety hereby waives notice of any change, extension of time, alteration, or addition to the terms of the Contract or the Work, with the exception that Surety shall be notified if the Contract time is extended by more than twenty percent (20%). If any modification or change increases the total amount to be paid under the Contract, Surety's obligation under this Performance and Payment Bond shall automatically increase in a like amount. Any such increase shall not exceed twenty-five percent (25%) of the original amount of the Performance and Payment Bond without the prior written consent of Surety. This Performance and Payment Bond shall be governed and construed by the laws of the State of Washington, and venue shall be in Kitsap County, Washington. IN WITNESS WHEREOF, the parties have executed this instrument in two (2) identical counterparts this day of , 20 Principal Surety Signature of Authorized Official Printed Name and Title Name and address of local office of Agent and/or Surety Company: Signature of Authorized Official Attorney in Fact (Attach Power of Attorney) Surety companies executing bonds must appear on the current Authorized Insurance List in the State of Washington per Section 1-02.7 of the Standard Specifications. City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 PagePlage f�of 202 ACKNOWLEDGEMENT Corporation, Partnership, or Individual STATE OF )ss. COUNTY OF ) On this day of , 20 , before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared , to me known to be the (check one of the following boxes): ❑ of ,the corporation, ❑ of partnership, ❑ individual, the that executed the foregoing instrument to be the free and voluntary act and deed of said ❑ corporation, ❑ partnership, ❑ individual for the uses and purposes therein mentioned, and on oath stated that ❑ he ❑ she was authorized to execute said instrument. WITNESS my hand and official seal hereto affixed the day and year first above written. Notary Seal with Ink Stamp City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Print or type name NOTARY PUBLIC, in and for the State of Washington Residing at My Commission expires: Rev 1/29/18 PagYage f�of 202 Back to Agenda SURETY ACKNOWLEDGEMENT STATE OF )ss. COUNTY OF On this day of , 20 , before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared , to me known to be the of , the corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that ❑ he ❑ she was authorized to execute said instrument. WITNESS my hand and official seal hereto affixed the day and year first above written. Notary Seal with Ink Stamp City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Print or type name NOTARY PUBLIC, in and for the State of Washington Residing at: My Commission expires: Rev 1/29/18 PagePlage golf 202 Back to Agenda CITY OF PORT ORCHARD MAINTENANCE/WARRANTY BOND (Note: Before the Performance Bond can be released the City must receive the two years Maintenance/Warranty Bond) PROJECT #, PERMIT #, PW2018-028 CONTRACT # C080-18 SURETY BOND #: DATE POSTED: EXPIRATION DATE: RE: Project Name: 1025 Tacoma Ave Fence Repair Owner/Developer/Contractor: Viking Fence Co Project Address 1025 Tacoma Avenue KNOW ALL PERSONS BY THESE PRESENTS: That we, (hereinafter called the "Principal'), and , a corporation organized under the laws of the State of , and authorized to transact surety business in the State of Washington (hereinafter called the "Surety"), are held and firmly bound unto the City of Port Orchard, Washington, in the sum of dollars ($ ) 20% Total Contract Amount, lawful money of the United States of America, for the payment of which sum we and each of us bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, by these presents. THE CONDITIONS of the above obligation are such that: WHEREAS, the above named Principal has constructed and installed certain improvements on public property in connection with a project as described above within the City of Port Orchard; and WHEREAS, the Principal is required to post a bond for the twenty-four (24) months following written and final acceptance of the project in order to provide security for the obligation of the Principal to repair and/or replace said improvements against defects in workmanship, materials or installation during the twenty-four (24) months after written and final approval/acceptance of the same by the City; NOW, THEREFORE, this Maintenance Bond has been secured and is hereby submitted to the City. It is understood and agreed that this obligation shall continue in effect until released in writing by the City, but only after the Principal has performed and satisfied the following conditions: A. The work or improvements installed by the Principal and subject to the terms and conditions of this Bond are as follows: (insert complete description of work here) B. The Principal and Surety agree that the work and improvements installed in the above -referenced project shall remain free from defects in material, workmanship and installation (or, in the case of landscaping, shall survive,) for a period of twenty-four (24) months after written and final acceptance of the same and approval by the City. Maintenance is defined as acts carried out to prevent a decline, lapse or cessation of the state of the project or improvements as accepted by the City during the twenty-four (24) month period after final and written acceptance, and includes, but is not limited to, repair or replacement of defective workmanship, materials or installations. City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 PagYage f�of 202 C. The Principal shall, at its sole cost and expense, carefully replace and/or repair any damage or defects in workmanship, materials or installation to the City -owned real property on which improvements have been installed, and leave the same in as good condition as it was before commencement of the work. D. The Principal and the Surety agree that in the event any of the improvements or restoration work installed or completed by the Principal as described herein, fail to remain free from defects in materials, workmanship or installation (or in the case of landscaping, fail to survive), for a period of twenty-four (24) months from the date of approval/acceptance of the work by the City, the Principal shall repair and/replace the same within ten (10) days of demand by the City, and if the Principal should fail to do so, then the Surety shall: 1. Within twenty (20) days of demand of the City, make written commitment to the City that it will either: a). remedy the default itself with reasonable diligence pursuant to a time schedule acceptable to the City; or b). tender to the City within an additional ten (10) days the amount necessary, as determined by the City, for the City to remedy the default, up to the total bond amount. Upon completion of the Surety's duties under either of the options above, the Surety shall then have fulfilled its obligations under this bond. If the Surety elects to fulfill its obligation pursuant to the requirements of subsection 1)(1)(b), the City shall notify the Surety of the actual cost of the remedy, upon completion of the remedy. The City shall return, without interest, any overpayment made by the Surety, and the Surety shall pay to the City any actual costs which exceeded the City estimate, limited to the bond amount. 2. In the event the Principal fails to make repairs or provide maintenance within the time period requested by the City, then the City, its employees and agents shall have the right at the City's sole election to enter onto said property described above for the purpose of repairing or maintaining the improvements. This provision shall not be construed as creating an obligation on the part of the City or its representatives to repair or maintain such improvements. E. Corrections. Any corrections required by the City shall be commenced within ten (10) days of notification by the City and completed within thirty (30) days of the date of notification. If the work is not performed in a timely manner, the City shall have the right, without recourse to legal action, to take such action under this bond as described in Section D above. F. Extensions and Changes. No change, extension of time, alteration or addition to the work to be performed by the Principal shall affect the obligation of the Principal or Surety on this bond, unless the City specifically agrees, in writing, to such alteration, addition, extension or change. The Surety waives notice of any such change, extension, alteration or addition thereunder. G. Enforcement. It is specifically agreed by and between the parties that in the event any legal action must be taken to enforce the provisions of this bond or to collect said bond, the prevailing party shall be entitled to collect its costs and reasonable attorney fees as a part of the reasonable costs of securing the obligation hereunder. In the event of settlement or resolution of these issues prior to the filing of any suit, the actual costs incurred by the City, including reasonable attorney fees, shall be City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 Pagerage f�of 202 considered a part of the obligation hereunder secured. Said costs and reasonable legal fees shall be recoverable by the prevailing party, not only from the proceeds of this bond, but also over and above said bond as a part of any recovery (including recovery on the bond) in any judicial proceeding. The Surety hereby agrees that this bond shall be governed by the laws of the State of Washington. Venue of any litigation arising out of this bond shall be in Kitsap County Superior Court. H. Bond Expiration. This bond shall remain in full force and effect until the obligations secured hereby have been fully performed and until released in writing by the City at the request of the Surety or Principal. DATED this day of 920 SURETY COMPANY DEVELOPER/OWNER (Signature must be notarized) (Signature must be notarized) By: Its Business Name: Business Address: City/State/Zip Code: Telephone Number: :y1111'(�6101'7 912 'F.11AC By: Its Public Works Director/City Engineer By Its Business Name: Business Address: City/State/Zip Code: Telephone Number: Date: CHECK FOR ATTACHED NOTARY SIGNATURE Individual (Form P-1) Corporation (Form P-2) Surety Company (Form P-2) City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Rev 1/29/18 PagePlageo olf 202 FORM P-1 / NOTARY BLOCK (Use For Individual/Sole Proprietor Only) STATE OF WASHINGTON ) ) ss. COUNTY OF KITSAP 1 I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that (he/she) signed this instrument, and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 Dated: (print or type name) NOTARY PUBLIC in and for the State of Washington, residing My Commission expires: Rev 1/29/18 PagVage f olf 202 FORM P-2 / NOTARY BLOCK (Use For Partnership or Corporation Only) (Developer/Owner) STATE OF WASHINGTON ) ss. COUNTY OF ) I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged as the of that (he/she) signed this instrument, on oath stated that (he/she) was authorized to execute the instrument and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. Dated: (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: My Commission expires: (Surety Company) STATE OF WASHINGTON ) ss. COUNTY OF ) I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged as the of that (he/she) signed this instrument, on oath stated that (he/she) was authorized to execute the instrument and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. Dated: City of Port Orchard and Viking Fence Co. Public Works Project No. PW2018-028 Small Works Contract No. C080-17 (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: My Commission expires: Rev 1/29/18 PagQge 2�of 202 Back to Agenda This Page Intentionally Left Blank Page 30 of 202 Back to Agenda ;W 4 a City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Consent Agenda 41) Subject: Approval of a Contract with Kitsap County Prosecuting Attorney for Prosecution of Municipal Criminal Complaints and Civil Infractions Meeting Date: Prepared by: December 11, 2018 Brandy Rinearson, MMC City Clerk Atty Routing No.: 107-18 Atty Review Date: December 5, 2018 Summary: For many years, the City has contracted with Kitsap County for legal services for prosecution of municipal criminal complaints and civil infractions. The current contract expires on December 31, 2018. The County is willing to continue to provide prosecution services. The agreement is for a two-year term. The key terms are the same as the current contract, except the County's costs have increased. In 2018, the City will have paid the County $110,970 for prosecution services. The new contract proposes a base figure of $112,948 to be paid in equal monthly installments. In addition, the City's cost will be adjusted annually to reflect increases in wages and benefits paid to the County's staff — not to exceed the Consumer Price Index - Urban (CPI-U) for the Seattle/Tacoma as published by the U.S. Department of Labor, Bureau of Labor Statistics. Recommendation: Staff recommends the approval of the contract, as presented. Relationship to Comprehensive Plan: N/A. Motion for consideration: "I move to approve a contract and authorize the Mayor to sign the Legal Services Agreement with Kitsap County for Prosecution Services." Fiscal Impact: The new contract reflects a cost increase to the City in 2019, as compared to the cost for the same services in 2018. The new contract amount will be incorporated into the 2019 budget. Alternatives: Not approve and provide direction to the Mayor. Attachments: Contract. Page 31 of 202 Back to Agenda This Page Intentionally Left Blank Page 32 of 202 Back to Agenda KC-003-19 LEGAL SERVICES AGREEMENT Prosecution Services This Agreement (this "Agreement") is entered into between the City of Port Orchard (the "City") and the Kitsap County Prosecuting Attorney (the "Prosecutor") pursuant to the provisions of Chapter 39.34 RCW (Interlocal Cooperation Act). WHEREAS, the Interlocal Cooperation Act permits local governmental units to make the most efficient use of their powers by enabling them to cooperate with other localities on a basis of mutual advantage and thereby to provide services and facilities in a manner and pursuant to forms of governmental organization that will accord best with geographic, economic, population and other factors influencing the needs and development of local communities; and WHEREAS, the City and the Prosecutor wish to mutually cooperate for the purposes described herein. NOW THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows: Section I PURPOSE The purpose of this agreement is for the Prosecutor to provide legal services for the City for prosecution of municipal criminal complaints and civil infractions. Section II SERVICES The Prosecutor will provide the full range of prosecution services (i.e., prosecution/case management, legal advisor and special projects as required) to the Police Department of the City, as more fully described in Exhibit A: Scope of Work, which is incorporated herein. Section III TERM OF AGREEMENT The term of this Agreement is January 1, 2019 through December 31, 2020. Section IV TERMINATION OF AGREEMENT This Agreement may be terminated by either party, with or without cause, upon four months' advance written notice to the other party. Page 33 of 202 Section V COMPENSATION The City and the Prosecutor agree that compensation for services rendered under this Agreement shall be at an annual cost of $112,948.00 beginning on January 1, 2019 and shall be paid in equal monthly installments. The compensation shall be reviewed during the budget process each year by the City Council and, with the agreement of both parties, may be renewed for an additional budget year. Commencing January 1, 2020, and each succeeding year thereafter that this Agreement remains in effect, compensation shall be adjusted for the coming year based on changes in the Base Starting Rate paid by the Prosecutor to a DPA I, Step I and Legal Assistant, Step 1, as described in Exhibit B - Compensation, "2019 Prosecution Contract — Base Starting Rate," which is incorporated herein. In no event, however, shall the changes in Base Salary exceed the percentage increase in the Consumer Price Index -Urban (CPI-U) for Seattle/Tacoma as published by the U.S. Department of Labor, Bureau of Labor Statistics, for the immediately preceding calendar year. Upon approval by the City Council and with the agreement of the Prosecutor, a written confirmation of budget shall be attached as an addendum to this Agreement and serve as an amendment to this section. Section VI OFFICE FACILITIES The City will provide office space, furnishings, and office equipment for one attorney and one support staff member of the Prosecutor. Section VII INSURANCE AND HOLD HARMLESS A. Insurance Prior to and during the performance of the work covered by this Agreement, the Prosecutor shall provide the Risk Manager for the Council with evidence that it has obtained and maintains in full force and effect during the term of this Agreement a policy of professional liability insurance, and/or errors and omissions insurance, providing coverage of at least $1,000,000 for professional liability or errors and omissions in connection with the work to be performed by the Prosecutor under this Agreement. The Prosecutor shall furnish a certificate of insurance to the City for review by the City's Risk Manager. The Risk Manager shall be provided 30 days' written notice of any cancellation of such professional liability insurance. B. Indemnification Each party agrees to defend and indemnify the other party and its elected and appointed officials, officers, employees and agents against all claims, losses, damages, suits and expenses, including reasonable attorneys' fees and costs, to the extent they arise out of the negligence or willful misconduct of the indemnitor or its elected or appointed officials, officers, employees and agents in the performance of this Agreement. The indemnitor's duty to defend and indemnify extends to claims by the elected or appointed officials, officers, employees or agents of the Page 34 of 202 indemnitor or of any contractor or subcontractor of indemnitor. The indemnitor waives its immunity under Title 51 (Industrial Insurance) of the Revised Code of Washington solely for the purposes of this provision and acknowledges that this waiver was mutually negotiated. This provision shall survive the termination of this Agreement. Section VIII GENERAL PROVISIONS A. Integration. This Agreement constitutes the entire agreement between the parties. No other understandings or representations, oral or written, regarding the subject matter of this Agreement will be deemed to exist or bind the parties. B. Amendments. Except as provided in Section V (relating to changes in compensation), this Agreement may be modified or amended only by a writing duly executed by authorized representatives of both parties. C. Coverage. The City contracts with the Prosecutor for prosecution assistance on an annual basis. The Prosecutor shall be responsible for providing backup and coverage in the event of any absence or conflict at costs within the annual budget. Such backup and coverage shall be provided only by duly appointed deputy prosecuting attorneys. D. Notices. Any notices required or permitted to be given under this Agreement shall be in writing and addressed as follows: If to the City: City Clerk City of Port Orchard 216 Prospect Street Port Orchard, WA 98366 With a copy to: City Attorney City of Port Orchard 216 Prospect Street Port Orchard, WA 98366 If to the Prosecutor: Kitsap County Prosecuting Attorney 614 Division Street, MS-35 Port Orchard, WA 98366 E. Files. All files and other documents maintained by the Prosecutor shall be the files of the City and accessible by the City through its City Attorney or other duly authorized representative during normal business hours. At the request of the City, any and all files maintained by the Prosecutor shall be tendered to the City. F. Independent Contractor. Prosecutor and assistant(s) are professionals acting without direct supervision and are independent contractors. Prosecutor waives any claim in the nature of a tax, charge, cost or employee benefit which would attach if Prosecutor or assistant(s) were held to be employees of the City. Page 35 of 202 G. Non -Discrimination. Prosecutor agrees not to discriminate against any employee or applicant for employment or any other person in the performance of this Agreement because of race, creed, color, national origin, marital status, sex, age, disability, veteran status, or other circumstance prohibited by federal, state, or local law or ordinance, except for a bona fide occupational qualification. Prosecutor shall comply with all federal, state and local laws and ordinances applicable to the work to be done under this Agreement. Violation of this section shall be a material breach of this Agreement and grounds for cancellation, termination or suspension by the City, in whole or in part, and may result in ineligibility for further work from City. H. Governing Law; Venue. This Agreement shall be construed and interpreted in accordance with the laws of the State of Washington. In the event of a dispute, such dispute shall be litigated only in the Superior Court of Kitsap County, Washington. I. Severability. The invalidity or unenforceability of any provision in this Agreement shall not affect the validity or enforceability of any other provisions that can be given effect without the offending provision. J. No Waiver. Failure to insist upon strict compliance with any terms, covenants or conditions of this Agreement shall not be deemed a waiver of such, nor shall any waiver or relinquishment of such right or power at any time be taken to be a waiver of any other breach. K. Administration. This Agreement will be jointly administered by the City and the Prosecutor. This Agreement does not create any separate legal or administrative entity. L. Financing Budget. This Agreement does not contemplate joint financing of the activities within its scope, nor does it contemplate a joint budget. M. Property Acquisition and Disposition. This Agreement does not contemplate the joint acquisition of property by the parties. At termination, each party will remain the sole owner of its own property. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date stated above. DATED this day of , 2018 CITY OF PORT ORCHARD DATED this day of , 2018. KITSAP COUNTY PROSECUTING ATTORNEY ROBERT PUTAANSUU, Mayor TINA R. ROBINSON, Prosecuting Attorney Page 36 of 202 Back to Agenda APPROVED AS TO FORM: DATED this day of , 2018. BOARD OF COUNTY COMMISSIONERS KITSAP COUNTY, WASHINGTON SHARON CATES, City Attorney ATTEST: ROBERT GELDER, Chair BRANDY RINEARSON, MMC, City Clerk EDWARD E. WOLFE, Commissioner CHARLOTTE GARRIDO, Commissioner ATTEST: DANA DANIELS, Clerk of the Board Page 37 of 202 Back to Agenda EXHIBIT A Page 38 of 202 EXHIBIT A: SCOPE OF WORK The Prosecutor will provide the full range of criminal prosecution and civil infraction enforcement (i.e., prosecution/case management, legal advisor and special projects as required) to the City's commissioned officers and other enforcement personnel as applicable. I. MUNICIPAL COURT A. Appearance and Preparation for All Regularly Scheduled Monthly Calendars as Follows: I. Non jury trials 2. Motion calendars 3. Jury readiness calendars 4. Contested infractions calendars, including administrative hearings and traffic hearings, but only in cases where a Notice of Appearance has been filed by a licensed attorney and/or as otherwise agreed by the parties 5. Jury trial calendars 6. Arraignments 7. Sentencings 8. Revocation hearings 9. Motions IO.Preliminary hearings (probable cause) I I .In -Custody hearings B. Miscellaneous: 1. Review cases, make decisions and file complaints 2. Obtain search and arrest warrants 3. Day-to-day advice, as needed, by telephone or in -person contact with City Police Department officers II. SUPERIOR COURT Appeals (preparation and appearance): 1. Commencing (only after discussion and authorization from City Attorney) 2. Defending III. MEETINGS A. Attend All Meetings with Police Department, City staff or City Council as Requested or Required to Address Current Issues B. Prepare Memoranda Addressing Legal Ramifications of Courses of Action Contemplated as Part of Those Meetings Page 39 of 202 Back to Agenda IV. PROVIDE LIAISON BETWEEN CITY POLICE DEPARTMENT AND COURT SYSTEM REGARDING PROCEDURES AND ENFORCEMENT V. PREPARE, REVIEW AND RESPOND TO ISSUES AS REQUESTED BY CITY ATTORNEY, CHIEF OF POLICE OR DEPUTY CHIEF OF POLICE VI. RECOMMEND NEEDED MUNICIPAL CODE AMENDMENTS TO CITY ATTORNEY VII. PROVIDE QUARTERLY REPORTS TO CITY AND CITY ATTORNEY'S OFFICE IDENTIFYING TOTAL CASE FILINGS AND CASE DISPOSITIONS Page 40 of 202 Back to Agenda EXHIBIT B Page 41 of 202 Back to Agenda 2019 Prosecution Contract - Base Starting Rate DPA I, Step I $ 64,147 2018 Rates Q01 $ - 2019 COLA 0.000"' 4,907 - --- - Social Security -t - 7.65 8,25 $ 857 jRetirement Workers Compensati 12.88%on $ 13,52 - Coun Benefit Bucket h Ben {{ $ 91,222 Legal Assistant, Step I $ 42,536 --- AB1 $ - '2018 Rates - -- C2019 COLA - -o-- 0.00% _ - - $ 3,254 Social Security 7.65%� $ 5,477 1 Retirement 12.88% $ 857 Workers Compensation $ 13,052 County Benefit Bucket $ 65,176 $ 112,948 Base Contract Amount i Page 42 of 202 Back to Agenda ;W 4 a Agenda Item No. City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Consent Agenda 4E Agenda Staff Report Subject: Approval of a Contract with Gordon Thomas Honeywell - Governmental Affairs for Lobbying Services Meeting Date Prepared by Atty Routing No.: Atty Review Date December 11, 2018 Brandy Rinearson, MMC City Clerk N/A N/A Summary: For several years, the City has contracted with Gordon Thomas Honeywell- Governmental Affairs (GTH-GA) to provide lobbying services for the City. Notable successes have included monies appropriated for the DeKalb pier project and for the Bay Street Pedestrian Pathway. GTH-GA also provides regular updates to the Council and City staff regarding legislative issues. The current contract expires on December 31, 2018. GTH-GA is willing to continue to provide legislative support. The agreement is for a two-year term. The key terms are the same as the current contract, except the cost has increased. In 2018, the City pays a monthly rate of $3,750 for lobbying services. GTH-GA's fee for the months between January 1, 2019 and December 31, 2019, is a monthly fee of $3,800, including applicable tax for the services listed in the contract. For the months between January 1, 2020 and December 31, 2020, a monthly fee of $3,850, including applicable tax for the services. And will only bill communication and travel expenses, not to exceed $2,500 per calendar year, including applicable tax. Recommendation: Staff recommends approval of the contract as presented. Relationship to Comprehensive Plan: N/A. Motion for consideration: "I move to approve the contract and authorize the Mayor to execute an agreement for lobbying services with Gordon Thomas Honeywell -Governmental Affairs for the period of January 1, 2019 through December 31, 2020, as presented. Fiscal Impact: On November 27, 2018, the City adopted the budget, to include lobbying services. The contract amounts are contemplated and budgeted within the adopted 2019-2020 Biennial Budget. There is no additional fiscal impact. Alternatives: Not approve and provide direction to the Mayor. Attachments: Contract. Page 43 of 202 Back to Agenda This Page Intentionally Left Blank Page 44 of 202 Back to Agenda CITY OF PORT ORCHARD PROFESSIONAL SERVICES AGREEMENT THIS Agreement is made effective as of the V day of January 2019, by and between the City of Port Orchard, a municipal corporation, organized under the laws of the State of Washington, whose address is: CITY OF PORT ORCHARD, WASHINGTON (hereinafter the "CITY") 216 Prospect Street Port Orchard, Washington 98366 Contact: Mayor Robert Putaansuu Phone: 360.876.4407 Fax: 360.895.9029 and Gordon Thomas Honeywell Governmental Affairs a Limited Liability Company (describe the type of organization, whether corporation, sole proprietorship, etc.), organized under the laws of the State of Washington, doing business at: Gordon Thomas Hone ell Governmental Affairs (hereinafter the "CONSULTANT") 1201 Pacific Ave, Suite 2100/1`0 Box 1677 Tacoma. WA 98401 Contact: Briahna Murray Phone: (253) 620-6500 Fax: (253) 620-6565 for professional services in connection with the following Project: The City's Legislative Agenda TERMS AND CONDITIONS 1. Services by Consultant. A. Consultant shall perform the services described in the Scope of Work attached to this Agreement as Exhibit "A" and City CounciI's Legislative Agenda attached as Exhibit "B". The services performed by the Consultant shall not exceed the Scope of Work without prior written authorization from the City. B. The City may from time to time require changes or modifications in the Scope of Work. Such changes, including any decrease or increase in the amount of compensation, shall be agreed to by the parties and incorporated in written amendments to the Agreement. 2. Terms. This Agreement shall commence on January 1, 2019, and shall terminate on December 31, 2020, unless extended or terminated in writing as provided herein. 3. Compensation. LUMP SUM. Compensation for these services shall be a Lump Sum of $ City of Port Orchard Gordon Thomas Honeywell -GA Professional Service Agreement Contract No. 1 of 10 Page 45 of 202 Back to Agenda ® TIME AND MATERIALS NOT TO EXCEED. For the months between January 1, 2o19 and December 31, 2019, the City of Port Orchard shall pay Consultant a monthly fee of $3,800, including sales tax for the services listed above. For the months between January 1, 2020 and December 31, 2020, the City of Port Orchard shall pay Consultant a monthly fee of $3,850, including sales tax for the services listed above. Consultant shall only bill communication and travel expenses, not to not exceed $2,500 per year, including sales tax for the term of the contract. TIME AND MATERIALS. Compensation for these services shall be on a time and material basis according to the list of billing rates and reimbursable expenses attached hereto as Exhibit OTHER. 4. Payment. A. Consultant shall maintain time and expense records and provide them to the City monthly after services have been performed, along with monthly invoices in a format acceptable to the City for work performed to the date of the invoice. B. All invoices shall be paid by City warrant within sixty (60) days of receipt of a proper invoice. If the City objects to all or any portion of any invoice, it shall so notify the Consultant of the same within fifteen (15) days from the date of receipt and shall pay that portion of the invoice not in dispute, and the parties shall immediately make every effort to settle the disputed portion. C. Consultant shall keep cost records and accounts pertaining to this Agreement available for inspection by City representatives for three (3) years after final payment unless a longer period is required by a third -party agreement. Copies shall be made available on request. D. On the effective date of this Agreement (or shortly thereafter), the Consultant shall comply with all federal and state laws applicable to independent contractors, including. but not limited to, the maintenance of a separate set of books and records that reflect all items of income and expenses of the Consultant's business, pursuant to Revised Code of Washington (RCW) 51.08.195, as required by law, to show that the services performed by the Consultant under this Agreement shall not give rise to an employer - employee relationship between the parties, which is subject to Title 51 RCW. Industrial Insurance. E. If the services rendered do not meet the requirements of the Agreement, Consultant will correct or modify the work to comply with the Agreement. City may withhold payment for such work until the work meets the requirements of the Agreement. 5. Discrimination and Compliance with Laws A. Consultant agrees not to discriminate against any employee or applicant for employment or any other person in the performance of this Agreement because of race, creed, color, national origin, marital status, sex, age, disability, or other circumstance prohibited by federal, state, or local law or ordinance, except for a bona fide occupational qualification. City of Port Orchard Gordon 'Thomas Honeywell -GA Professional Service Agreement Contract No. 2of10 Page 46 of 202 Back to Agenda B. Even though the Consultant is an independent contractor with the authority to control and direct the performance and details of the work authorized under this Agreement, the work must meet the approval of the City and shall be subject to the City's general right inspection to secure the satisfactory completion thereof. The Consultant agrees to comply with all federal, state and municipal laws, rules and regulations that are now effective or become applicable within the terms of this Agreement to the Consultant's business, equipment and personnel engaged in operations covered by this Agreement or accruing out of the performance of such operations. C. Consultant shall obtain a City of Port Orchard business license prior to receipt of written Notice to Proceed. D. Violation of this Paragraph 6 shall be a material breach of this Agreement and grounds for cancellation, termination, or suspension of the Agreement by City, in whole or in part, and may result in ineligibility for further work for City. 6. Relationship of Parties. The parties intend that an independent contractor -client relationship will be created by this Agreement. As the Consultant is customarily engaged in an independently established trade which encompasses the specific service provided to the City hereunder, no agent, employee, representative or sub -consultant of the Consultant shall be or shall be deemed to be the employee, agent, representative or sub -consultant of the City. In the performance of the work, the Consultant is an independent contractor with the ability to control and direct the performance and details of the work, the City being interested only in the results obtained under this Agreement. None of the benefits provided by the City to its employees including, but not limited to, compensation, insurance, and unemployment insurance are available from the City to the employees, agents, representatives or sub -consultants of the Consultant. The Consultant will be solely and entirely responsible for its acts and for the acts of its agents, employees, representatives and sub -consultants during the performance of this Agreement. The City may, during the term of this Agreement, engage other independent contractors to perform the same or similar work that the Consultant performs hereunder. 7. Suspension and Termination of Agreement A. Termination without cause. This Agreement may be terminated by the City at any time for public convenience, for the Consultant's insolvency or bankruptcy, or the Consultant's assignment for the benefit of creditors. B. Termination with cause. The Agreement may be terminated upon the default of the Consultant. C. Rights U on Termination. 1. With or Without Cause. Upon termination for any reason, all finished or unfinished documents, reports, or other material or work of Consultant pursuant to this Agreement shall be submitted to City, and Consultant shall be entitled to just and equitable compensation for any satisfactory work completed prior to the date of termination, not to exceed the total compensation set forth herein. Consultant shall not be entitled to any reallocation of cost, profit or overhead. Consultant shall not in any event be entitled to anticipated profit on work not performed because of such termination. Consultant shall use its best efforts to minimize the compensation payable City of Port Orchard Gordon Thomas Honeywell -GA Professional Service Agreement Contract No. 3of10 Page 47 of 202 Back to Agenda under this Agreement in the event of such termination. Upon termination. the City may take over the work and prosecute the same to completion, by contract or otherwise. 2. Default. If the Agreement is terminated for default, the Consultant shall not be entitled to receive any further payments under the Agreement until all work called for has been fully performed. Any extra cost or damage to the City resulting from such default(s) shall be deducted from any money due or coming due to the Consultant. The Consultant shall bear any extra expenses incurred by the City in completing the work, including all increased costs for completing the work, and all damage sustained, or which may be sustained by the City by reason of such default. D. Suspension. The City may suspend this Agreement, at its sole discretion. Any reimbursement for expenses incurred due to the suspension shall be limited to the Consultant's reasonable expenses. and shall be subject to verification. The Consultant shall resume performance of services under this Agreement without delay when the suspension period ends. E. Notice of Termination or Suspension. If delivered to the Consultant in person, termination shall be effective immediately upon the Consultant's receipt of the City's written notice or such date as stated in the City's notice of termination, whichever is later. Notice of suspension shall be given to the Consultant in writing upon one week's advance notice to Consultant. Such notice shall indicate the anticipated period of suspension. Notice may also be delivered to the Consultant at the address set forth in Section 15 herein. 8. Standard of Care. Consultant represents and warrants that it has the requisite training, skill and experience necessary to provide the services under this agreement and is appropriately accredited and licensed by all applicable agencies and governmental entities. Services provided by Consultant under this agreement will be performed in a manner consistent with that degree of care and skill ordinarily exercised by members of the same profession currently practicing in similar circumstances. 9. Ownership of Work Product. A. All data materials, reports, memoranda, and other documents developed under this Agreement whether finished or not shall become the property of City, shall be forwarded to City at its request and may be used by City as it sees fit. Upon termination of this agreement pursuant to paragraph 8 above, all finished or unfinished documents, reports, or other material or work of Consultant pursuant to this Agreement shall be submitted to City- B. All written information submitted by the City to the Consultant in connection with the services performed by the Consultant under this Agreement will be safeguarded by the Consultant to at least the same extent as the Consultant safeguards like information relating to its own business. If such information is publicly available or is already in Consultant's possession or known to it, or is rightfully obtained by the Consultant from third parties. the Consultant shall bear no responsibility for its disclosure, inadvertent or otherwise. 10. Work Performed at the Consultant's Risk. The Consultant shall take all precautions necessary and shall be responsible for the safety of its employees, agents and sub -consultants in the performance of the work hereunder, and shall utilize all protection necessary for that purpose. All work shall be done at City of fort Orchard Gordon Thomas Honeywell -GA Professional Service Agreement Contract No. 4of10 Page 48 of 202 Back to Agenda the Consultant"s own risk, and the Consultant shall be responsible for any loss or damage to materials, tools, or other articles used or held by the Consultant for use in connection with the work. 11. Indemnification. The Consultant shall defend, indemnify and hold the City, its officers, officials, employees. agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal Costs and attorneys' fees, arising out of or in connection with the performance of this Agreement, except for injuries and damages caused by the sole negligence of the City. The City's inspection or acceptance of any of the Consultant's work when completed shall not be grounds to avoid any of these covenants of indemnification. Should a court of competent jurisdiction determine that this Agreement is Subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Consultant and the City. its officers, officials, employees. agents and Volunteers, the Consultant's liability hereunder shall be only to the extent of the Consultant's negligence. IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE CONSULTANT'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSES OF T141S INDEMNIFICATION. THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER. THE CONSULTANT'S WAIVER OF IMMUNITY UNDER THE PROVISIONS OF THIS SECTION DOES NOT INCLUDE, OR EXTEND TO. ANY CLAIMS BY THE CONSULTANT'S EMPLOYEES DIRECTLY AGAINST THE CONSULTANT. 12. Insurance. The Consultant shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees. A. Minimum Scope of Insurance Consultant shall obtain insurance of the types described below: I. Automobile Liability insurance covering all owned, non -owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 or a substitute form providing equivalent liability coverage and shall cover liability arising from premises, operations, independent contractors and personal injury and advertising injury. The City shall be named by endorsement as an additional insured under the Consultant's Commercial General Liability insurance policy with respect to the work performed for the City. 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. City of Port Orchard Gordon Thomas Honeywell -GA Professional Service Agreement Contract No. 5of10 Page 49 of 202 Back to Agenda 4. Professional Liability insurance appropriate to the Consultant's profession. B. Minimum Amounts of Insurance Consultant shall maintain the following insurance limits: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. 2. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2.000.000 general aggregate. 3. Professional Liability insurance shall be written with limits no less than $1,000,000 per claim and $1,000,000 policy aggregate limit.+ 4. Employer's Liability each accident $1,000,000, Employer's Liability Disease each employee $1,000,000, and Employer's Liability Disease -Policy Limit $1,000,000, C. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions for Automobile Liability, Professional Liability and Commercial General Liability insurance: 1. The Consultant's insurance coverage shall be primary insurance as respect the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Consultant's insurance and shall not contribute with it. 2. The Consultant's insurance shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. 3. The City will not waive its right to subrogation against the Consultant. The Consultant's insurance shall be endorsed acknowledging that the City will not waive their right to subrogation. The Consultant's insurance shall be endorsed to waive the right of subrogation against the City, or any self-insurance. or insurance pool coverage maintained by the City. 4. If any coverage is written on a "claims made" basis, then a minimum of a three (3) year extended reporting period shall be included with the claims made policy. and proof of this extended reporting period provide to the City. D. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than ANIL E. Verification of Coverage City of Port Orchard Gordon Thomas Honeywell -GA Professional Service Agreement Contract No. 6of10 Page 50 of 202 Back to Agenda Consultant shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Consultant before commencement of the work. 13. Assigning or Subcontracting. Consultant shall not assign, transfer, subcontract or encumber any rights, duties, or interests accruing from this Agreement without the express prior written consent of the City. which consent may be withheld in the sole discretion of the City. 14. Notice. Any notices required to be given by the City to Consultant or by Consultant to the City shall be in writing and delivered to the parties at the following addresses: Robert Putaansuu Mayor 216 Prospect Street Port Orchard, WA 98366 Phone: (360) 876-4407 Fax: (360) 895-9029 Gordon Thomas Honeywell Gov. Affairs Attu: Briahna Murray 1201 Pacific Avenue, Suite 2100 Tacoma, WA 98401 Phone: (253) 620-6500 Fax: (253) 620-6565 15. Resolution of Disputes and Governing Law. A. Should any dispute, misunderstanding or conflict arise as to the terms and conditions contained in this Agreement, the matter shall first be referred to the Mayor, who shall determine the term or provision's true intent or meaning. The Mayor shall also decide all questions which may arise between the parties relative to the actual services provided or to the sufficiency of the performance hereunder. B. If any dispute arises between the City and the Consultant under any of the provisions of this Agreement which cannot be resolved by the Mayor's determination in a reasonable time, or if the Consultant does not agree with the Mayor's decision on a disputed matter, jurisdiction of any resulting litigation shall be filed in Kitsap County Superior Court, Kitsap County, Washington. C. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In any suit or action instituted to enforce any right granted in this Agreement, the substantially prevailing party shall be entitled to recover its costs, disbursements, and reasonable attorney's fees from the other party. 16. General Provisions. A. Non -waiver of Breach. The failure of either party to insist upon strict performance of any of the covenants and agreements contained herein, or to exercise any option herein contained in one or more instances, shall not be construed to be a waiver or relinquishment of said covenants, agreements, or options, and the same shall be in full force and effect. B. Modification. No waiver, alteration, modification of any of the provisions of this Agreement shall be binding unless in writing and signed by a duly authorized representative of the City and the Consultant. City of Port Orchard Gordon Thomas Honeywell -GA Professional Service Agreement Contract No. _ 7of10 Page 51 of 202 Back to Agenda C. Severability. The provisions of this Agreement are declared to be severable. If any provision of this Agreement is for any reason held by a court of competent jurisdiction to be invalid or unconstitutional. such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other provision. D. Entire Agreement. The written provisions of this Agreement, together with any Exhibits attached hereto, shall supersede all prior verbal statements of any officer or other representative of the City, and such statements shall not be effective or be construed as entering into or forming a part of or altering in any manner whatsoever, the Agreement or the Agreement documents. The entire agreement between the parties with respect to the subject matter hereunder is contained in this Agreement and the Exhibits attached hereto, which may or may not have been dated prior to the execution of this Agreement. All of the above documents are hereby made a part of this Agreement and form the Agreement document as fully as if the same were set forth herein. Should any language in any of the Exhibits to this Agreement conflict with any language contained in this Agreement, then this Agreement shall prevail. IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year set forth above. CITY OF PORT ORCHARD, WASHINGTON By: Date: Robert Putaansuu Mayor Attest: Brandy Rinearson, MMC, CPRO City Clerk APPROVED AS TO FORM: Sharon Cates City Attorney City of Port Orchard Gordon Thomas Honeywell -GA Professional Service Agreement Contract No. Gordon Thomas Honeywell Governmental Affairs By:ow.�elz lr��11 Briahna Murray Vice President Date: I J� 8of10 Page 52 of 202 Back to Agenda EXHIBIT A SCOPE OF WORK Consultant shall provide the City of Port Orchard with the following governmental affairs services: • Provide the City with a weekly legislative report during the legislative session that includes weekly hearing schedules, a summary of bills important to the City, and bill tracking. Identify legislation that would impact the City of Port Orchard specifically. • Attend all relevant legislative hearings. • Work with the city to develop a holistic legislative agenda. • Meet with legislators year round to promote city legislative agenda items. • Develop and lobby for Transportation and Capital Budget funding requests identified by the Council. • Lobby the Legislature on all issues developed under the legislative program. • Lobby defensively on legislation that is introduced that would negatively impact the City. • GTH-GA would register as the City's lobbyist with the Public Disclosure Commission. City of Port Orchard Gordon Thomas Honeywell -GA Professional Service Agreement Contract No. 9of10 Page 53 of 202 Back to Agenda EXHIBIT B DRAFT 2019-21 Legislative Priorities McCormick Sewage Lift Station #2 The City of Port Orchard inherited responsibility for the McCormick Woods sewer lift station from Kitsap County in 1994. The old sewer lift station is functionally obsolete. The City and private developer are jointly completing two new sewage lift stations. Lift Station #1 is under construction at the developer's expense, and the City is responsible for building Lift Station #2 in 2019. The total project cost to the City will be $2.8 million and is seeking $1 million in capital budget funding to complete the project. State Investment in State Routes Like many cities, Port Orchard faces challenges in maintaining and improving the City's transportation system. State routes — Sedgwick Road (State Route 160) and State Route 16 — traverse through the City and serve as both regional and local thoroughfares. Because these are state routes, the state is responsible for maintaining and improving them to accommodate the region's growing population. The City is seeking $8 million in transportation funding for two compact roundabouts at the SR 16 and SR-160 interchanges in order to help mitigate congestion along these state routes. Economic Development Tools The City of Port Orchard supports economic development tools that benefit the development of the City's downtown area. The City also supports the Association of Washington Cities economic development and redevelopment legislative priority as it benefits the City of Port Orchard. Condominium Liability The City of Port Orchard supports legislation that limits liability on condominium developers. In 2005, WA State passed a "model" condominium liability law that resulted in an unfriendly environment and strict liability laws for condominium developers, and the issue has not been revisited since. The City supports modernizing the statute to ease some of this burden on developers. Some examples the City is interested in are: defining what "damage" is, allowing the developer an opportunity to cure or fix a defect. a warranty insurance program, and smaller condo buildings. Foster Pilot Program The City of Port Orchard was chosen by the State for a water resource mitigation pilot project, which will inform a legislative task force on options for how to respond to the Poster decision. The outcomes of this pilot project, and ultimately the recommendations of the legislative task force are of critical importance for the City and the state. The City seeks ongoing legislative support for these issues as the pilot program and task force continue. The City of Port Orchard supports the Association of Washington Cities ' legislative agenda. City of Port Orchard Gordon Thomas Honeywell -GA Professional Service Agreement Contract No. 10 of 10 Page 54 of 202 Agenda Item No.: Subject: City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Consent Agenda 4F Approval of Amendment No. 1 to Contract No. 002-18 with Kitsap County for Incarceration of Prisoners Meeting Date Prepared by Back to Agenda December 11, 2018 Geoffrey C Marti Chief of Police Atty Routing No.: 107-18 Atty Review Date: December 6, 2018 Summary: Amendment to the contract between Kitsap County and City of Port Orchard for incarceration of prisoners, covering January 1st through December 31st, 2019. Recommendation: Authorize the Mayor to sign the amendment with the Kitsap County for jail services in the year 2019. Relationship to Comprehensive Plan: None. Motion for consideration: I move to authorize the Mayor to execute a contract with Kitsap County for prisoner confinement services for the year 2018. Fiscal Impact: Jail costs move to $97.80/day. Alternatives: N/A Attachments: Amendment No. 1 Page 55 of 202 Back to Agenda This Page Intentionally Left Blank Page 56 of 202 Back to Agenda KC-249-17-A FIRST AMENDMENT KITSAP COUNTY/CITY OF PORT ORCHARD AGREEMENT FOR INCARCERATION OF CITY PRISONERS This First Amendment to the Kitsap County/City of Port Orchard Agreement for Incarceration of City Prisoners ("Amendment") is made between Kitsap County, ("County"), and the City of Port Orchard, a Washington state municipal corporation ("Contract Agency"). In consideration of the mutual benefits and covenants contained herein, the parties agree that Kitsap County Contract No. KC-249-17 ("Agreement"), shall be amended asfollows: 1. Subsection 6 (a) (Base Rate for Housing) is amended and replaced with the following: Base Rate for Housing. In return for the County's housing of a Contract Agency Prisoner, the Contract Agency shall pay the County from the time the prisoner is transferred to the custody of the County to the time when the Contract Agency resumes custody of the prisoner, or the prisoner is released. The bed -day rate for housing a prisoner during Calendar Year 2019 will be ninety-seven dollars and eighty cents ($97.80) for every 24-hour period, or portion thereof, that said prisoner is in the custody of the County. "Split Billing" as defined in Section 5 above will be apportioned as appropriate. 2. Subsection 6 (c) (Billing) is amended and replaced with thefollowing: The County will bill the Contract Agency on or about the 30th day of each month for all amounts due to the County under this Agreement for the services rendered in the prior calendar month. Such fees shall be due and payable by the Contract Agency to the County within 30 days after receipt of an itemized invoice with the exception of the year-end invoice for the month of December. December's invoice will be billed at the average cost of the Contract Agency's usage for the months of January through November. Once the December invoice has been finalized, it will be adjusted accordingly with the previously pro -rated December invoice. 3. Section 22 (Duration) is amended and replaced with thefollowing: The Agreement shall be effective January 1, 2019 through December 31, 2019, unless terminated earlier pursuant to Section 23, or extended by agreement of the parties. Nothing in this Agreement shall be construed to make it necessary for the Contract Agency to continuously house prisoners with the County. Page 57 of 202 Back to Agenda 4. Effective Date. The effective date of this Amendment is January 1, 2019. 5. Insurance. If this Amendment extends the expiration date of the Agreement, then the Contract Agency shall provide an updated certificate of insurance and endorsement evidencing that any required insurance coverages are in effect through the new contract expiration date. The Contract Agency shall submit the certificate of insurance to: Kitsap County Risk Management Division, 614 Division Street, MS-7, Port Orchard, Washington 98366. 6. Terms Unchanged. Except as expressly provided in this Amendment, all other terms and conditions of the Agreement, and any subsequent amendments, addenda, or modifications thereto remain in full force and effect. 7. Counterparts. This Amendment may be executed in several counterparts, each of which will be deemed an original, but all of which together will constitution one and the same agreement. 8. Authorizations. The signatories to this Amendment represent that they have been appropriately authorized to enter into this Amendment on behalf of the Party for whom they sign, and that no further action or approvals are necessary before execution of this Amendment. (Signatures on next page.) 2 Page 58 of 202 Back to Agenda DATED this day of CITY OF PORT ORCHARD Robert Putaansuu, Mayor ATTEST: Brandy Rinearson, City Clerk ,201 DATED this day of 1201 _ KITSAP COUNTY SHERIFF'S OFFICE Gary Simpson, Sheriff BOARD OF COUNTY COMMISSIONERS KITSAP COUNTY, WASHINGTON DATED this day of 12019 EDWARD E. WOLFE, Chair CHARLOTTE GARRIDO, Commissioner ROBERT GELDER, Commissioner ATTEST: Dana Daniels, Clerk of the Board Page 59 of 202 Back to Agenda This Page Intentionally Left Blank Page 60 of 202 Back to Agenda ;0 4 a City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Consent Agenda 4G Subject: Approval of Amendment No. 1 to Contract No. 096-16 with Kitsap Community Resources for the Community Service Worker Program Meeting Date: December 11, 2018 Prepared by: Sharon Cates City Attorney Atty Routing No: 109-18 Atty Review Date: December 6, 2018 Summary: In December 2016, the City entered into a Professional Services Agreement with Kitsap Community Resources for the Port Orchard Community Service Worker Program ("Agreement"). That Agreement is set to expire on December 31, 2018. The City Council has recently authorized the Mayor to hire a City employee to run the City's Community Service Worker Program, and City staff requires time to go through the hiring process for this position. Kitsap Community Resources has agreed to extend the Agreement into 2019 to allow the City time to fill this position. Amendment No. 1 to the Agreement allows for the extension of the Agreement on the same terms, on a month -to -month basis, until no later than June 30, 2019. Recommendation: Mayor Putaansuu recommends approving Amendment No. 1 to the Kitsap Community Resources Professional Services Agreement as presented. Relationship to Comprehensive Plan: N/A. Motion for consideration: I move to approve Amendment No. 1 to Contract No. 096-16 with Kitsap Community Resources for the Port Orchard Community Service Worker Program. Fiscal Impact: None. As the full year is in the 2019 Budget. Alternatives: Not approve. Attachments: Amendment No. 1 and Contract No. 096-16 Page 61 of 202 Back to Agenda This Page Intentionally Left Blank Page 62 of 202 AMENDMENT NO. 1 TO CITY OF PORT ORCHARD CONTRACT NO.096-16 PROFESSIONAL SERVICES AGREEMENT WITH KITSAP COMMUNITY RESOURCES FOR THE PORT ORCHARD COMMUNITY SERVICE WORKER PROGRAM THIS AMENDMENT No. 1 to Contract No. 096-16 ("Amendment") is made effective as of the 1 I' day of December 2018, by and between the City of Port Orchard ("City"), a Washington municipal corporation, and Kitsap Community Resources, a Washington non-profit corporation ("KCR"). WHEREAS, on December 29, 2016, the City and KCR executed a Professional Services Agreement for the Port Orchard Community Service Worker Program ("Underlying Agreement"); and WHEREAS, the Underlying Agreement is set to expire on December 31, 2018; and WHEREAS, Section 81 of the Underlying Agreement provides for amendments thereto with the written concurrence of both parties; and WHEREAS, the parties to the Underlying Agreement agree that it is the interests of both to extend the Underlying Agreement on a month -to -month basis into 2019 under the same terms provided therein; and WHEREAS, the parties to the Underlying Agreement wish to memorialize their agreement to a month -to -month continuation thereof, NOW, THEREFORE, follows: In consideration of the mutual benefits accruing, it is agreed by and between the parties thereto as The Underlying Agreement regarding the Port Orchard Community Service Worker Program, attached hereto as Exhibit A and incorporated herein by this reference, is amended in, but only in, the following respect: a. The term of the Underlying Agreement is hereby extended on a month -to -month basis beginning January 1, 2019 and continuing until no later than June 30, 2019 under the same terms as provided therein. Termination may take place prior to June 30, 2019 according to the provisions of Section 10 of the Underlying Agreement, with the exception that the City need only provide 14 days notice of termination to KCR. 2. In all other respects, the Underlying Agreement between the parties shall remain in full force and effect, amended as set forth herein, but only as set forth herein. IN WITNESS WHEREOF, the parties have executed this Amendment No. 1 on the day and year set forth above. Page 63 of 202 CITY OF PORT ORCHARD, WASHINGTON KITSAP COMMUNITY SERVICES Robert Putaansuu, Mayor Irmgard Davis, Interim Executive Director ATTEST/AUTHENTICATED: Brandy Rinearson, MMC, City Clerk Sharon Cates, City Attorney Page 64 of 202 Back to Agenda PROFESSIONAL SERVICES AGREEMENT Contract No. 096-16 Port Orchard Community Service Worker Program THIS AGREEMENT is entered into between the CITY OF PORT ORCHARD, a municipal Corporation (hereinafter referred to as "the City") and KITSAP COMMUNITY RESOURCES, a non- profit corporation (hereinafter referred to as "KCR"). RECITALS Whereas, the Port Orchard Municipal Court (hereinafter referred to as "the Court") hears civil, criminal, and infraction cases arising within the city limits of the City of Port Orchard; and Whereas, for over a decade, the Court has had the discretion to offer parties convicted of criminal offenses the option of performing community service as an alternative to jail and/or the payment of fines; and Whereas, the City and the Court desire to maintain the option of community service because it provides a substantial benefit to the City through the performance of certain work and because it results in reduced jail costs; and Whereas, KCR has managed the Community Service Worker Program for the City since October 2012 and the City desires to continue this partnership; Now, Therefore, the parties hereto agree as follows: AGREEMENT 1. SCOPE: KCR agrees to manage a Community Service Worker Program ("CSW") for the City. Defendants convicted in Port Orchard Municipal Court will be referred to CSW to provide a specified number of hours of labor for the City in lieu of jail or fines. The work to be performed by the defendants and to be supervised by KCR is described in Appendix A to this Agreement, which is incorporated herein by this reference. The Port Orchard Municipal Court will provide KCR with the defendant's agreement form, which shall include the defendant's name, case number, start date and number of community service hours to be performed by the defendant. KCR will supervise the defendant in the performance of community service work and provide reports to the Court indicating whether the defendant has fulfilled his or her community service obligation. Reporting guidelines shall include, but are not be limited to: a. KCR will submit a monthly report to the Court that summarizes the community service work performed. The report will be submitted within 5 working days following the end of the month. b. Individual status reports for individuals that include completion or non-compliance by the date required on the defendant's agreement form. c. Additionally, significant incident reports will be reported to the Court in a timely manner. Determination of significance will be the responsibility of KCR's CSW Program Coordinator. 2. TERM: Contract shall commence on January 1, 2017 and will terminate December 31, 2018. Page 1 of 6 KCR and City of Port Orchard Contract Page 65 of 202 -3 Back to Agenda 3. COMPENSATION: City shall pay KCR the sum of $3,968.60 per month for the life of the contract upon receipt of the monthly invoice. 4. RELATIONSHIP OF PARTIES: The parties understand and agree that KCR will provide supervision of the defendants. KCR is an organization experienced in matters pertaining to community service programs and will perform independent functions and responsibilities in the area of its particular field of expertise. KCR's CSW Program and its personnel shall act as independent contractors and not employees of the City. As such they have no authority to bind the City nor to control employees of the City, contractors, or other entities. Within the performance of these duties, KCR's CSW Program personnel shall work under the direction of KCR's Employment and Training Division. None of the benefits provided by the City to its employees, including but not limited to compensation, insurance and unemployment insurance, are available from the City to the employees, representatives or sub -consultants of KCR. 5. INDUSTRIAL INSURANCE: KCR agrees to provide for State industrial insurance coverage for its personnel as required by State Law. 6. INSURANCE AND HOLD HARMLESS: a. Prior to and during the performance of the work covered by this agreement, KCR shall provide the Risk Manager for the City of Port Orchard with evidence that it has obtained and will maintain in full force and effect during the term of this Agreement a policy of professional liability insurance providing General Liability and Professional Liability Coverage in connection with the work to be performed by KCR/CSW Program under this Agreement of at least $1,000,000.00 per claim and $2,000,000 annual aggregate limit and a policy of automobile liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. The City of Port Orchard shall be listed by endorsement as an additional insured on the general liability, auto liability, and professional liability coverage. All coverage for KCR/CSW program shall be primary over any and all coverages that the City of Port Orchard has or may have in place. The City of Port Orchard does not waive its right of recovery or subrogation against the KCR/CSW program. The commercial general liability and professional liability coverage shall be written on an occurrence form. All carriers shall have a minimum A.M Best rating of A-VII. The Risk Manager shall be provided sixty (60) days written notice of any cancellations of said insurance. b. KCR agrees to defend, indemnify and hold harmless the City, its officers, officials, employees, and volunteers from and against any and all claims, injuries, liability, loss, costs, damages, expenses, or suits, including costs and attorney fees in defense thereof, arising or alleged to have arisen directly or indirectly out of or in consequence of the performance of this Agreement. This provision shall be inapplicable to the extent the City is judicially found solely negligent for such damage or injury. c. Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injuries or damages to property caused by or resulting from the concurrent negligence of KCR and the City, its officers, officials, employees, and volunteers, KCR's liability hereunder shall be only to the extent of KCR's negligence. Page 2 of 6 KCR and City of Port Orchard Contract Page 66 of 202 d. It is further specifically and expressly understood that the indemnification provided herein constitutes KCR's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. KCR's waiver of immunity under the provisions of this section does not include, or extend to, any claims by KCR's employees directly against KCR. The provisions of this section shall survive the expiration or termination of this Agreement. 7. STANDARD OF CARE: KCR represents and warrants that it has the requisite training, skills, and experience necessary to provide the services under this Agreement and is appropriately accredited and licensed by all applicable agencies and governmental entities. Services provided by KCR under this Agreement will be performed in a manner consistent with that degree of care and skill ordinarily exercised by members of the same profession currently practicing in similar circumstances. 8. GENERAL CONDITIONS: a. Reports and Information — KCR, at such times and in such forms as the City may require, shall furnish the City such reasonable periodic reports and documents as it may request pertaining to the work or services undertaken pursuant to the Agreement, the cost and obligations incurred or to be incurred in connection therewith, and any other matters covered by this Agreement. KCR will maintain all cost and accounting records in accordance with generally accepted accounting principles, and these records shall be available for inspection by City representatives for three (3) years after final payment unless a longer period is required by a third party agreement. b. Vacation — KCR reserves the right to close CSW for two separate weeks throughout the year to allow the coordinator to take vacation. KCR will notify the City at least 30 days prior to this closure. c. Reporting Location — Court ordered community service workers (defendants) will report to KCR's CSW Program at KCR's South Kitsap facility at 3200 SE Rainshadow Court, located near Jackson and Lund, or other such location in Port Orchard as KCR shall designate after first providing written notice to and approval from the City. d. Equipment — The City shall provide basic tools and supplies to complete tasks listed on Appendix A such as shovels, rakes, brooms, garbage bags, paint, etc. Power tools and specialty equipment for special projects will be provided upon arrangement with the City. e. Vehicles — The City will provide a passenger van, vehicles for abatement clearing, maintenance on said vehicles, including all regularly scheduled preventative maintenance and/or corrective maintenance required during normal operation. The City agrees to pay vehicle registration fees and fuel required to operate said vehicles. KCR will ensure that the City -provided vehicle is properly insured in case of collision, vandalism, damage, etc. KCR will also ensure that only staff that is properly and legally licensed will operate the City vehicle, including obtaining a MVR on all drivers prior to allowing KCR staff to operate a City -owned vehicle. f. Non -Waiver of Breach — The failure of either party to insist upon strict performance of any of the covenants and agreements contained herein, in one or more instances, shall not be construed to be a waiver or relinquishment of said covenants or agreements, and the same shall be in full force and Page 3 of 6 Page 67 of 202 KCR and City of Port Orchard Contract effect. Amendments — The parties herby further agree that this Agreement cannot be amended or modified without the written concurrence of both parties. g. Notices — Any notices required to be given by the City to KCR or by KCR to the City shall be in writing and delivered to the parties at the following addresses: Geoffrey Marti Chief of Police 546 Bay Street Port Orchard, WA 98366 Larry Eyer Kitsap Community Resources 845 81h Street Bremerton, WA 98337 h. Compliance with Laws — KCR agrees to comply with all applicable local, state and federal laws in performance of all service under this Agreement. i. Applicable Law and Venue — This Agreement shall be construed and interpreted in accordance with the laws of the State of Washington and, in the event of dispute, the venue of any action brought hereunder shall be in Kitsap County Superior Court. Severability — The provisions of this Agreement are declared to be severable. If any provision of this Agreement is for any reason held by a court of competent jurisdiction to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other provision. k. Entire Agreement — This Agreement and the Appendix attached hereto constitutes the entire agreement between the parties and both parties acknowledge that there are no other agreements, written or oral, that have not been fully set forth in the text of this Agreement. The written provisions of this Agreement, together with the Appendix attached hereto, shall supersede all prior verbal statements of any officer or other representative of the City, and such statements shall not be effective or be construed as entering into or forming a part of or altering in any manner whatsoever, the Agreement or the Agreement documents. The above -referenced documents are hereby made a part of this Agreement and form the Agreement document as fully as if the same were set forth herein. Should any language in the Appendix to this Agreement conflict with any language contained in this Agreement, then this Agreement shall prevail. 9. NONDISCRIMINATION: KCR shall not discriminate in employment or services to the public on the basis of race, creed, color, national origin, sex, religion, age, marital status, disability, or other circumstance prohibited by federal, state, or local law or ordinance, except based on a bona fide occupational qualification. Violation of this provision shall be a material breach of this Agreement and grounds for cancellation, termination, or suspension of the Agreement by the City, in whole or in part, and may result in ineligibility for further work for the City. 10. TERMINATION: This Agreement may be terminated by either party for convenience upon sixty (60) days written notice to the other party, or for cause if either party fails substantially to perform through no fault of the other and does not commence correction within five (5) days of written notice and diligently completes the correction thereafter. Upon such termination, the defendants shall immediately stop working and will no longer be supervised by KCR. Page 4 of 6 Page 68 of 202 KCR and City of Port Orchard Contract IN WITNESS WHEREOF the parties hereto have executed this Agreement the date and year indicated. KITSAP COMMUNITY RESOURCES Date: i a_ a'a'_ 9L 0\ Up BY: Date: I- 1 �p Attest: Brandy Rinearson, City Clerk Approved as to form: Sharon Cates, City Attorney Larry(Ey'*Vr, Executive Director CITY OF PORT ORCHARD Robert Putaansuu, Mayor Page 5 of 6 Page 69 of 202 KCR and City of Port Orchard Contract Appendix A: Duties to be completed by KCR's CSW program as part of the 2017-2018 Port Orchard Community Service Worker Program contract: 1. Empty all City -owned garbage cans at City facilities, parks, downtown public areas, and waterfront. 2. Litter pick-up at City facilities and streets. 3. Brush pick-up when needed (City will provide staff for hauling). 4. Sidewalk sweeping on City sidewalks. 5. Snow shoveling on City sidewalks when needed. 6. Put up holiday lights on City hall campus. 7. Water trees, plants and hanging flower baskets on Bay Street downtown (seasonal). 8. Fill sandbags when needed. 9. Wash City vehicles when requested. 10. Remove graffiti when requested by re -painting or actual removal. 11. Assist City building custodian with projects such as power washing, window washing, painting, etc. as requested by the Public Works department. Page 6 of 6 Page 70 of 202 KCR and City of Port Orchard Contract City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Business Item 7A Subject: Adoption of a Resolution Confirming Mayoral Appointments to Boards and Commissions Back to Agenda Meeting Date: December 11, 2018 Prepared by: Robert Putaansuu Mayor Atty Routing No.: N/A Atty Review Date: N/A Summary: Annually, the City Clerk's office reviews the expiring terms or vacancy of members of various boards and commissions. The Mayor has appointed the following persons to the Boards and Commissions: • Planning Commission: Re -appointment of Marcus Lane for a four-year term expiring December 31, 2022. • Civil Service Commission: Re -appointment of Rick Wyatt for a six -year term expiring December 31, 2024. • Design Review Board: Appointment of Scott Bonjukian for a three-year term expiring December 31, 2021; and re -appointment of Noel Larson for a three-year term expiring December 31, 2021. • Animal Control Appeal Board: Re -appointment of Bjorn Bjorke for a three-year term expiring December 31, 2021. • Building Board of Appeals: Re -appointment of Matt Zawlocki for a five-year term expiring December 31, 2023. • LEOFF (Law Enforcement Officer & Fire Fighter Disability) Board: Re -appointment of Jerry Childs for a two-year term expiring December 31, 2020. • Kitsap County Grant Recommendation Committee: Re -appointment of Christine Stansbery for a one-year term expiring December 31, 2019. • Kitsap County Services Grant Recommendation Committee: Re -appointment of Christine Stansbery for a one-year term expiring December 31, 2019. • Kitsap Transit Board: Appointment of Councilmember Jay Rosapape for the duration of his term in elective office or until the Port Orchard City Council confirms another representative. Recommendation: Mayor Putaansuu recommends adoption of a Resolution confirming his appointments, as presented. Relationship to Comprehensive Plan: N/A. Motion for consideration: "I move to adopt a Resolution confirming the Mayor's appointments to the Boards and Commissions, as set forth in the Resolution presented." Fiscal Impact: None. Page 71 of 202 Back to Agenda Business Item 7A Page 2 of 2 Alternatives: Not confirm the Mayor's appointment and provide further direction to Mayor. Attachments: Resolution. Page 72 of 202 Back to Agenda RESOLUTION NO. A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON CONFIRMING MAYORAL APPOINTMENTS TO THE PLANNING COMMISSION, CIVIL SERVICE COMMISSION, DESIGN REVIEW BOARD, ANIMAL CONTROL APPEAL BOARD, BUILDING BOARD OF APPEALS, THE KITSAP COUNTY GRANT RECOMMENDATION COMMITTEES, AND KITSAP TRANSIT. WHEREAS, the Mayor is authorized to appoint volunteers to fill expired or vacant terms on the various boards and commissions, upon confirmation of the City Council; and WHEREAS, the following boards and commissions have expiring terms; now therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: The City Council of the City of Port Orchard does hereby confirm the re -appointment of Marcus Lane for a four-year term expiring December 31, 2022, to the Planning Commission. THAT: The City Council of the City of Port Orchard does hereby confirm the re -appointment of Rick Wyatt for a six -year term expiring December 31, 2024, to the Civil Service Commission. THAT: The City Council of the City of Port Orchard does hereby confirm the appointment of Scott Bonjukian for a three-year term expiring December 31, 2021; and re -appointment of Noel Larson for a three-year term expiring December 31, 2021, to the Design Review Board. THAT: The City Council of the City of Port Orchard does hereby confirm the re -appointment of Bjorn Bjorke for a three-year term expiring December 31, 2021, to the Animal Control Appeal Board. THAT: The City Council of the City of Port Orchard does hereby confirm the re -appointment of Matt Zawlocki for a five-year term expiring December 31, 2023, to the Building Board of Appeals. THAT: The City Council of the City of Port Orchard does hereby confirm the re -appointment of Jerry Childs for a two-year term expiring December 31, 2020, to the LEOFF (Law Enforcement Office & Fire Fighter Disability) Board. Page 73 of 202 Back to Agenda Resolution No. _ Page 2 of 2 THAT: The City Council of the City of Port Orchard does hereby confirm the re -appointment of Chris Stansbery for a one-year term expiring December 31, 2020, to the Kitsap County Grant Recommendation Committee. THAT: The City Council of the City of Port Orchard does hereby confirm the re -appointment of Chris Stansbery for a one-year term expiring December 31, 2020, to the Kitsap County Services Grant Recommendation Committee. THAT: The City Council of the City of Port Orchard does hereby confirm the appointment of Councilmember Jay Rosapepe to serve for the duration of his term in elective office or until the Port Orchard City Council confirms another representative to the Kitsap Transit Board. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the City Clerk in authentication of such passage this 11t" day of December 2018. ATTEST: Brandy Rinearson, MMC, City Clerk Rob Putaansuu, Mayor Page 74 of 202 Agenda Item No City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Business Item 7B Agenda Staff Report Subject: Adoption of Resolution Approving a Contract with Schneider Equipment, Inc. dba Schneider Water Services for the Well 13 Drilling Project Meeting Date Prepared by Back to Agenda December 11, 2018 Mark Dorsey, P.E. Public Works Director Atty Routing No.: N/A Atty Review Date: N/A Summary: On October 26, 2018 and November 2, 2018, the City's Public Works Department advertised in the Port Orchard Independent, the City's Webpage and the Daily Journal of Commerce, and uploaded the Bid Documents to the Washington Builder's Exchange. By the November 28, 2018 Bid Due Date at 12:00 PM, the City received and opened two (2) Sealed Bids for the Well No. 13 — Drilling Project. In general summary, the Sealed Bids received (applicable tax included) range from the apparent low of $1,395,091.00 to the apparent high of $1,461,254.00, with the Engineers Estimate at $1,100,000.00 to $1,400,000.00. Following the completion of the Mandatory Bidder Responsibility Checklist, it was determined that Schneider Equipment, Inc, dba Schneider Water Services provided the lowest responsive and qualified Bid Proposal of $1,395,091.00 for the Well No. 13 — Drilling Project. Relationship to Comprehensive Plan: Project 7 - Utilities. Recommendation: Staff recommends that the City Council adopt a Resolution, thereby approving a Contract with Schneider Equipment Inc. dba Schneider Water Services in an amount not to exceed $1,395,091.00 (applicable taxes included) for the Well No. 13 — Drilling Project. Motion for Consideration: I move to adopt a Resolution, thereby approving a Contract with Schneider Equipment Inc. dba Schneider Water Services in an amount not to exceed $1,395,091.00 (applicable taxes included) for the Well No. 13 — Drilling Project. Fiscal Impact: Funding provided from Water Capital Fund 413. Alternatives: Do not approve. Attachments: Resolution and Contract. Page 75 of 202 Back to Agenda This Page Intentionally Left Blank Page 76 of 202 Back to Agenda RESOLUTION NO. A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, APPROVING CONTRACT NO. C077-18 WITH SCHNEIDER EQUIPMENT, INC. dba SCHNEIDER WATER SERVICES FOR THE WELL #13 DRILLING PROJECT AND DOCUMENTING THE PROCUREMENT PROCEDURES. WHEREAS, on October 26, 2018 and November 2, 2018, the City's Public Works Department Advertised in the Port Orchard Independent, the City's Webpage, the Daily Journal of Commerce and uploaded the Bid Documents to the Washington Builder's Exchange, with a November 28, 2018 Bid Due Date; and WHEREAS, on November 28, 2018 by the 12:00 PM Bid deadline, the City Clerk received and opened two (2) Sealed Bids, with Schneider Equipment, Inc. dba Schneider Water Services determined initially to be the apparent responsive Low Bid; and WHEREAS, on December 3, 2018, upon completion of the Bid Tabulation and Bidder Responsibility Checklist, it was determined that Schneider Equipment, Inc. dba Schneider Water Services provided the lowest responsive and qualified Bid Proposal for the Well #13 — Drilling Project; and WHEREAS, the Port Orchard City Council, at the 2015 recommendation of the State Auditor's Office, wishes to document their selection/procurement process as described above for this particular contract by Resolution; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: THAT: The City Council approves Contract No. 077-18 with Schneider Equipment, Inc. dba Schneider Water Services for the Well #13 Drilling Project and adopts the "Whereas" statements contained herein, as findings in support of the City's selection and procurement procedures. PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested by the City Clerk in authentication of such passage on this 11th day of December 2018. ATTEST: Brandy Rinearson, MMC, City Clerk Robert Putaansuu, Mayor Page 77 of 202 XIWN"t Ma" CITY OF PORT ORCHARD WELL 13 — DRILLING PROJECT CONTRACT NO. C077-18 THIS CONTRACT ("Contract") is made and entered into this 11 day of December , 2018, by and between the City of Port Orchard, a municipality incorporated and existing under the laws of the State of Washington, hereinafter called the "City," and Schneider Equipment, Inc. , hereinafter called the "Contractor." WITNESSETH: That the Contractor, in consideration of the covenants, agreements and payments to be performed and made by the City, hereby covenants and agrees to furnish all labor, tools, materials, equipment and supplies required for, and to execute, construct and finish in full compliance with the Contract Documents, WELL 13 — DRILLING PROJECT. The Contractor further agrees to perform all such work for the Contract Price stated in the Contractor's Bid Proposal dated 11/28/2018 , attached hereto and incorporated herein by this reference as if set forth in full. The Contract Documents, duly identified, together with the Instructions to Bidders, a confirmed copy of the Proposal made by the Contractor on11/28/2018, and the 2018 WSDOT Standard Specifications for Road, Bridge, and Municipal Construction, as modified by Amendments and Special Provisions, are hereby made a part of this Contract and are mutually cooperative therewith. Time is of the essence of this Contract. It is agreed that the work covered by this Contract shall start within 21 calendar days after Notice to Proceed is issued and that all construction shall be complete within 200 calendar days after the Notice to Proceed Date. It is further agreed that the City will suffer damage and be put to additional expense in the event that the Contractor shall not have the specified portions of the work completed in all its parts in the time specified, and as it may be difficult to accurately compute the amount of such damage, the Contractor expressly convents and agrees to pay to the City liquidated damages, the sum as calculated by the equation shown in Section 1-08.9 of the WSDOT Standard Specifications, for each and every working day said work is not complete beyond the time shown in the Proposal. Contractor understands that her/his bid response documents and any contract documents may be subject to release under the Public Records Act Chapter 42.56 RCW and the City may be required to disclose such documents upon a request. Contractor acknowledges that s/he has been advised to mark any records believed to be trade secrets or confidential in nature as "confidential." If records marked as "confidential" are found to be responsive to the request for records, the City as a courtesy to the Contractor, may elect to give notice to Contractor of the request so as to allow Contractor to seek a protective order from a Court. Contractor acknowledges and agrees that any records deemed responsive to a public records request may be released at the sole discretion of, and without notice by, the City. Rev 1129118 by SEC City of Port Orchard Well 13 —Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-49 Contract Documents Contract Page 78 of 202 With this Contract, Contractor is furnishing a Corporate Surety Bond in the amount of Dollars ($ ) with as Surety, to insure full compliance, execution and performance of this Contract by the Contractor in accordance with all its terms and provisions. In the event of litigation, venue shall be within Kitsap County, Washington. IN WITNESS WHEREOF the parties hereto have caused these presents to be duly executed. CITY OF PORT ORCHARD By: Robert Putaansuu, Mayor CONTRACTOR By: Title: Address: ATTEST: Brandy Rinearson, MMC, City Clerk APPROVED AS TO FORM: Sharon Cates, City Attorney Rev 1129118 by SEC City of Port Orchard Well 13 —Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-50 Contract Documents Contract Page 79 of 202 We, a (Principal) PERFORMANCE AND PAYMENT BOND CITY OF PORT ORCHARD WELL 13 — DRILLING PROJECT PW PROJECT NO. PW2018-026 BOND TO CITY OF PORT ORCHARD, WASHINGTON BOND NO. a surety upon Bonds of Contractors severally bound to the City of (Surety) Corporation, and as a surety corporation authorized to become with municipal corporations in Washington State, are jointly and Port Orchard, Washington ("Owner"), in the penal sum of Dollars ($ ), the payment of which sum, on demand, we bind ourselves and our successors, heirs, administrators, executors, or personal representatives, as the case may be. This Performance Bond is provided to secure the performance of Principal in connection with a contract dated , 20_, between Principal and Owner for a project entitled ("Project") — Public Works Project No. ("Contract"). The initial penal sum shall equal 100 percent of the Total Bid Price, including all applicable state sales tax, as specified in the Proposal submitted by Principal. NOW, THEREFORE, this Performance and Payment Bond shall be satisfied and released only upon the condition that Principal: Faithfully performs all provisions of the Contract and changes authorized by Owner in the manner and within the time specified as may be extended under the Contract; Pays all laborers, mechanics, subcontractors, lower tier subcontractors, material persons, and all other persons or agents who supply labor, equipment, or materials to the Project; Pays the taxes, increases and penalties incurred on the Project under Titles 50, 51 and 82 RCW on: (A) Projects referred to in RCW 60.28.01 l(1)(b); and/or (B) Projects for which the bond is conditioned on the payment of such taxes, increases and penalties. The surety shall indemnify, defend, and protect the Owner against any claim of direct or indirect loss resulting from the failure: Of the Principal (or any of the employees, subcontractors, or lower tier subcontractors of the Principal) to faithfully perform the Contract, or Of the Principal (or any subcontractor or lower tier subcontractor of the Principal) to pay all laborers, mechanics, subcontractors, lower tier subcontractors, material person, or any other person who provides supplies or provisions for carrying out the work. The liability of Surety shall be limited to the penal sum of this Performance and Payment Bond. Rev 1129118 by SEC City of Port Orchard Well 13 —Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-51 Contract Documents Performance And Payment Bond Page 80 of 202 Principle and Surety agree that if the Owner is required to engage the services of an attorney in connection with enforcement of this bond each shall pay the Owner reasonable attorney's fees, whether or not suit is commenced, in addition to the penal sum. No change, extension of time, alteration, or addition to the terms of the Contract or to the Work to be performed under the Contract shall in any way affect Surety's obligation on the Performance Bond. Surety hereby waives notice of any change, extension of time, alteration, or addition to the terms of the Contract or the Work, with the exception that Surety shall be notified if the Contract time is extended by more than twenty percent (20%). If any modification or change increases the total amount to be paid under the Contract, Surety's obligation under this Performance and Payment Bond shall automatically increase in a like amount. Any such increase shall not exceed twenty-five percent (25%) of the original amount of the Performance and Payment Bond without the prior written consent of Surety. This Performance and Payment Bond shall be governed and construed by the laws of the State of Washington, and venue shall be in Kitsap County, Washington. IN WITNESS WHEREOF, the parties have executed this instrument in two (2) identical counterparts this day of , 20 Principal Signature of Authorized Official Printed Name and Title Name and address of local office of Agent and/or Surety Company: Surety Signature of Authorized Official Attorney in Fact (Attach Power of Attorney) Surety companies executing bonds must appear on the current Authorized Insurance List in the State of Washington per Section 1-02.7 of the Standard Specifications. Rev 1129118 by SEC City of Port Orchard Well 13 —Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-52 Contract Documents Performance And Payment Bond Page 81 of 202 Back to Agenda ACKNOWLEDGEMENT CORPORATION, PARTNERSHIP, OR INDIVIDUAL 0r:V400611 )ss. COUNTY OF On this day of 920 , before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared , to me known to be the (check one of the following boxes): 0 corporation, 0 partnership, o individual, of , the of the that executed the foregoing instrument to be the free and voluntary act and deed of said o corporation, o partnership, o individual for the uses and purposes therein mentioned, and on oath stated that o he oshe was authorized to execute said instrument. WITNESS my hand and official seal hereto affixed the day and year first above written. Print or type name NOTARY PUBLIC, in and for the State of Washington Residing at My Commission expires: Notary Seal with Ink Stamp Rev 1129118 by SEC City of Port Orchard Well 13 —Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-53 Contract Documents Acknowledgement Page 82 of 202 This page intentionally left blank. Page 83 of 202 STATE OF SURETY ACKNOWLEDGEMENT )ss. COUNTY OF ) On this day of , 20 , before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared , to me known to be the of , the corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that o he o she was authorized to execute said instrument. WITNESS my hand and official seal hereto affixed the day and year first above written. Print or type name NOTARY PUBLIC, in and for the State of Washington Residing at My Commission expires: Notary Seal with Ink Stamp Rev 1129118 by SEC City of Port Orchard Well 13 —Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-55 Contract Documents Surety Acknowledgement Page 84 of 202 This page intentionally left blank. Page 85 of 202 CITY OF PORT ORCHARD MAINTENANCEIWARRANTY BOND Project #: PW2018-026 Surety Bond #: Date Posted: Expiration Date: RE: Project Name: Well 13 - Drilling Project Owner/Developer/Contractor: Schneider Equipment, Inc. Project Address: 4940/4986 Bethel Road KNOW ALL PERSONS BY THESE PRESENTS: That we, (hereinafter called the "Principal'), and , a corporation organized under the laws of the State of and authorized to transact surety business in the State of Washington (hereinafter called the "Surety"), are held and firmly bound unto the City of Port Orchard, Washington, in the sum of dollars ($ ) 20% of the total contract amount, lawful money of the United States of America, for the payment of which sum we and each of us bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, by these presents. THE CONDITIONS of the above obligation are such that: WHEREAS, the above named Principal has constructed and installed certain improvements on public property in connection with a project as described above within the City of Port Orchard; and WHEREAS, the Principal is required to post a bond for the twenty-four (24) months following written and final acceptance of the project in order to provide security for the obligation of the Principal to repair and/or replace said improvements against defects in workmanship, materials or installation during the twenty-four (24) months after written and final approval/acceptance of the same by the City; NOW, THEREFORE, this Maintenance Bond has been secured and is hereby submitted to the City. It is understood and agreed that this obligation shall continue in effect until released in writing by the City, but only after the Principal has performed and satisfied the following conditions: A. The work or improvements installed by the Principal and subject to the terms and conditions of this Bond are as follows: (insert complete description of work here) B. The Principal and Surety agree that the work and improvements installed in the above -referenced project shall remain free from defects in material, workmanship and installation (or, in the case of landscaping, shall survive,) for a period of twenty-four (24) months after written and final acceptance of the same and approval by the City. Maintenance is defined as acts carried out to prevent a decline, lapse or cessation of the state of the project or improvements as accepted by the City during the twenty-four (24) month period after final and written acceptance, and includes, but is not limited to, repair or replacement of defective workmanship, materials or installations. C. The Principal shall, at its sole cost and expense, carefully replace and/or repair any damage or defects in workmanship, materials or installation to the City -owned real property on which improvements have been installed, and leave the same in as good condition as it was before commencement of the work. Rev 1129118 by SEC City of Port Orchard Well 13 —Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-57 Contract Documents Maintenance/Warranty Bond Page 86 of 202 D. The Principal and the Surety agree that in the event any of the improvements or restoration work installed or completed by the Principal as described herein, fail to remain free from defects in materials, workmanship or installation (or in the case of landscaping, fail to survive), for a period of twenty-four (24) months from the date of approval/acceptance of the work by the City, the Principal shall repair and/replace the same within ten (10) days of demand by the City, and if the Principal should fail to do so, then the Surety shall: Within twenty (20) days of demand of the City, make written commitment to the City that it will either: a). remedy the default itself with reasonable diligence pursuant to a time schedule acceptable to the City; or b). tender to the City within an additional ten (10) days the amount necessary, as determined by the City, for the City to remedy the default, up to the total bond amount. Upon completion of the Surety's duties under either of the options above, the Surety shall then have fulfilled its obligations under this bond. If the Surety elects to fulfill its obligation pursuant to the requirements of subsection 1)(1)(b), the City shall notify the Surety of the actual cost of the remedy, upon completion of the remedy. The City shall return, without interest, any overpayment made by the Surety, and the Surety shall pay to the City any actual costs which exceeded the City estimate, limited to the bond amount. 2. In the event the Principal fails to make repairs or provide maintenance within the time period requested by the City, then the City, its employees and agents shall have the right at the City's sole election to enter onto said property described above for the purpose of repairing or maintaining the improvements. This provision shall not be construed as creating an obligation on the part of the City or its representatives to repair or maintain such improvements. E. Corrections. Any corrections required by the City shall be commenced within ten (10) days of notification by the City and completed within thirty (30) days of the date of notification. If the work is not performed in a timely manner, the City shall have the right, without recourse to legal action, to take such action under this bond as described in Section D above. F. Extensions and Changes. No change, extension of time, alteration or addition to the work to be performed by the Principal shall affect the obligation of the Principal or Surety on this bond, unless the City specifically agrees, in writing, to such alteration, addition, extension or change. The Surety waives notice of any such change, extension, alteration or addition thereunder. G. Enforcement. It is specifically agreed by and between the parties that in the event any legal action must be taken to enforce the provisions of this bond or to collect said bond, the prevailing party shall be entitled to collect its costs and reasonable attorney fees as a part of the reasonable costs of securing the obligation hereunder. In the event of settlement or resolution of these issues prior to the filing of any suit, the actual costs incurred by the City, including reasonable attorney fees, shall be considered a part of the obligation hereunder secured. Said costs and reasonable legal fees shall be recoverable by the prevailing party, not only from the proceeds of this bond, but also over and above said bond as a part of any recovery (including recovery on the bond) in any judicial proceeding. The Surety hereby agrees that this bond shall be governed by the laws of Rev 1129118 by SEC City of Port Orchard Well 13 —Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-58 Contract Documents Maintenance/Warranty Bond Page 87 of 202 the State of Washington. Venue of any litigation arising out of this bond shall be in Kitsap County Superior Court. H. Bond Expiration. This bond shall remain in full force and effect until the obligations secured hereby have been fully performed and until released in writing by the City at the request of the Surety or Principal. DATED this day of , 20 SURETY COMPANY (Signature must be notarized) By: Its Business Name: Business Address: City/State/Zip Code: Telephone Number: DEVELOPER/OWNER (Signature must be notarized) By: Its Business Name: Business Address: City/State/Zip Code: Telephone Number: CHECK FOR ATTACHED NOTARY SIGNATURE Individual (Form P-1) Corporation (Form P-2) Surety Company (Form P-2) Rev 1129118 by SEC City of Port Orchard Well 13 —Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-59 Contract Documents Maintenance/Warranty Bond Page 88 of 202 FORM P-1 / NOTARY BLOCK (Use For Individual/Sole Proprietor Only) STATE OF WASHINGTON ) ss. COUNTY OF KITSAP ) I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that (he/she) signed this instrument, and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. Dated: (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: My Commission expires: Rev 1129118 by SEC City of Port Orchard Well 13 —Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-60 Contract Documents Maintenance/Warranty Bond Page 89 of 202 FORM P-2 / NOTARY BLOCK (Use For Partnership or Corporation Only) (Developer/Owner) STATE OF WASHINGTON ) ss. COUNTY OF ) I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged as the of that (he/she) signed this instrument, on oath stated that (he/she) was authorized to execute the instrument and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. Dated: (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: My Commission expires: Rev 1129118 by SEC City of Port Orchard Well 13 —Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-61 Contract Documents Maintenance/Warranty Bond Page 90 of 202 FORM P-2/NOTARY BLOCK (Surety Company) STATE OF WASHINGTON ) ss. COUNTY OF ) I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged as the of that (he/she) signed this instrument, on oath stated that (he/she) was authorized to execute the instrument and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. Dated: (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: My Commission expires: Rev 1129118 by SEC City of Port Orchard Well 13 —Drilling Project, Project # PW2018-026, Permit # PW17-027, Contract # C077-18 LD-62 Contract Documents Maintenance/Warranty Bond Page 91 of 202 PROPOSAL CITY OF PORT ORCHARD WELL 13 — DRILLING PROJECT CONTRACT NO. C077-18 To: Mayor and City Council City of Port Orchard, Washington Contractor: Schneider Equipment Inc., State License No.: SCHNEE1940138 dbuSthMdeMaterServices Date: November 26, 2018 Month/Day/Year Bidder's Declaration and Understanding The Bidder declares that s/he has carefully examined the Contract Documents for the construction of the project, that s/he has personally inspected the site, that s/he has satisfied her/himself as to the quantities involved, including materials and equipment, and conditions of work involved, including the fact that the description of the quantities of work and materials, as included herein, is brief and is intended only to indicate the general nature of the work and to identify the said quantities with the detailed requirements of the Contract Documents, and that this Proposal is made according the provisions and under the terms of the Contract Documents, which Documents are hereby made a part of this Proposal. The Bidder further declares that s/he has exercised her/his own judgment regarding the interpretation, of subsurface information and has utilized all data, which s/he believes pertinent from City and other sources and has made such independent investigations as the Bidder deems necessary in arriving at her/his conclusions. Bidder understands that any bid response documents may be subject to release under the Public Records Act Chapter 42.56 RCW and the City may be required to disclose bid responses upon a request. Bidder acknowledges that s/he has been advised to mark any records believed to be trade secrets or confidential in nature as "confidential." If records marked as "confidential" are found to be responsive to the request for records, the City as a courtesy to the Bidder may elect to give notice to Bidder of the request so as to allow Bidder to seek a protective order from a Court. Bidder acknowledges and agrees that any records deemed responsive to a public records request may be released at the sole discretion of, and without notice by, the City. Contract Execution The Bidder agrees that if this Proposal is accepted, s/he will, within fourteen (14) calendar days after Notice of Award, complete and sign the Contract in the form annexed hereto, and will at that time deliver to the City executed copies of the Performance Bond, Labor and Material Payment bond, the Certificate of Insurance, and other documentation required by the Contract Documents, and will, to the extent of her/his Proposal, furnish all machinery, tools, apparatus and other means of construction and do the work and furnish all the materials or services necessary to complete all work as specified or indicated in the Contract Documents. Start of Construction and Contract Completion The Bidder further agrees that within 14 calendar days of the Notice to Proceed date, s/he will meet with engineering personnel and begin work no earlier than the Notice to Proceed date, and complete the construction within 200 calendar days of the Notice to Proceed date. The bidder should be aware that a separate project, Well 13 - Site Preparation, will need to be completed on site before access to the site is available for well drilling activities. It is estimated that Rev 1129118 by SEC City of Port Orchard Well 13 — Drilling Project, Project # PW2018-02b Permit # PFV17-027 Contract # C077-18 LD-27 Contract Documents Proposal Page 92 of 202 Back to Agenda the Site Preparation Project will be completed by the end of April 2O19. The successful bidder will be notified by the City the date of Notice to Proceed within 100 calendar days of the Notice of Award. Notice of Award is scheduled for December 12, 2018. The prices in the successful bidder's Schedule of Contract Prices shall remain valid at all times after the bid opening. Revisions to the prices will not be allowed unless written permission is provided by the City. Lump Sum and Unit Price Work The Bidder further proposes to accept as full payment for the work proposed herein the amounts computed under the provisions of the Contract Documents and based on lump sum and unit price amounts, it being expressly understood that the unit prices are independent of the exact quantities involved. The Bidder agrees that the lump sum prices and the unit prices represent a true measure of the labor, services, and materials required to perform the work, including all allowances for overhead and profit for each type and unit of work called for in these Contract Documents. If any material, item, or service required by the Contract Documents has not been mentioned specifically, the same shall be furnished and placed with the understanding that the full cost to the City has been merged with prices named in the proposal. Rev 1129118 by SEC City of Port Orchard Well 13 —Drilling Project, Project # M2018-026. Permit # PW17-827, Contract #.007719 LD-28 Contract Documents Proposal Page 93 of 202 SCHEDULE OF CONTRACT PRICES WELL 13 — DRILLING PROJECT NOTE: If a discrepancy between the numerical unit price and the written (words) unit price is found, the written (words) unit price shall control. Item Estimated No. Quantity Unit Price Amount SCHEDULE A — TEST DRILLING i. Lump Sum STD Mobilization/Demobilization 06 1-09 $ I7G�� M ti ID�j ;� / ep "' [ Pair" in gr e'& 1 Per Lump Sum 2. 1,500 LF Drill Minimum 8-Inch Open Hole to a Depth of SP 1,500 Feet (Price in [k449-f* Per Linear Foot SP/STD Description of Item 3, 8 HR SP Standby Time As Directed By Hydrogeologist o� a rr (Price in in Words) Per Hour 4 8 HR SP Authorized Rig Hourly Work I kr+t'��Iilfl�i+t.rlf�/1��►*�f�-�=00 (Price in Words) Per Hour 5 Lump Sum SP Authorized Extra Materials $ One thousand dollars and no cents $ 1,000.00 $ 1,000.00 (Price in Words) Price for bid use SUBTOTAL, SCHEDULE A Sales Tax @ 9.0%, SCHEDULE A GD TOTAL BID, SCHEDULE A $_- f Rev 1 29118 6r SEC Cih° ofPorl Orchard Will 13 - Drilling Project, Project # Pft,2018-026 Permit # PN 17-027, Contract # C077-18 LD-29 Contract Documents Schedule grContract Prices Page 94 of 202 Provided to Builders Exchange of WA, Inc. For usage Conditions Agreement see www.bxwa.com - Always Verify Scal Back to Agenda Item Estimated No. Quantity SP/STD Description of Item Unit Price Amount SCHEDULE B- PRODUCTION WELL DRILLING 1 Lump Sum STD Mobilization/Demobilization .40 1-09 S Y 1OC! r dt $ J.� 3 r adS 6 ,!�OQ 1 Ho tceTt"1 ,(too a►Frvr Lump Sum 2 150 LF SP Drill and Install 30-Incfh Castling ti.Ge r �INvtGfi`i✓�r+re} 5 �Q�. vv oe $ O, OOO (Price in Words) Per Linear Foot 3. 1,150 LF SP Drill 30-Inch Nominal Hole (minimum 26-inch) and Install 20-Inch Casing 4040 Off (1'OltIn 1�A.f WAr * Pcr Linear Foot 4. 8 HR SP Standby Time As Directed By The Hydrogeologist $ I oGr4► alfoe4,016O.d ao (Price in Words) Per Hour 5. Lump Sum SP Install Cementing Shoe to 20-Inch Casing 00 5 n lTfOro a ►�� Gvrl 'cr I.,�tmp Stun 6. 200 LF SP Drill by Reverse Circulation Method a 20-Inch Nominal Hole (Minrmum 18-Inch Diameter) goo S dd �l $ sZ-,— � l 4 (AI Xest i5�� S Per Linear Foot T Lump Sun SP Furnish 200 Linear Feet of 16-Inch Pipe Size Type 304 Deep -Set Stainless -Steel Well Screen $ One hundred thirty thousand dollars and no cents $ $ 130,000.00 (Price ii Words) Lump Sun 3. 130 LF SP Furnish 16-Inch (0 375 wall) Blank Steel Pipe with Plate Bottom 0 s a" $ I s&" $ /&. I IcM it l�'ni5}� 5 per Linear hoot 9. Lump Simi SP Authorized Extra Materials $ Twenty thousand _ADD =xidno cents $ $ 20,000.00 (Price in Words) Price for Bid Use Rev 11291186rSEC On, of Port Orchard We1113 - Drilling Project, Project N PW2018-026, Permit #PA"17-027. Contract N C077-18 LB-30 Contract Documents Schadide of Contract Prices Page 95 of 202 Provided to Builders Exchange of WA, Inc. For usage Conditions Agreement see www.bxwa.com - Always Verify Scal Back to Agenda Item Estimated No. Quantity SP/STD Description of Item Unit Price Amount 10. 160 Hours SP Authorized Rig Hourly Work s;'v� Iyu►t�P►�..� r+srd� ►�o cv,erL $ (Price in Words) Per Hour 11. Lump Sum SP Fumish, Install and Remove Tools and Equipment for Well Development (actual development done as Item 10) wrf0 $_fo, OC-0, $ le, e0d, (Price in Words) (7-05) Per Lump Sum 12. Lump Sum SP Furnish, Install and Remove Test Pumping Equipment (1,500 gpm) n Wroi W��7�ts1 Ye Per Lump Sum 13 30 HR STD Conduct Step Drawdown Pumping Test and 24- Hour Constant Rate Test ap� 67 $ 3 S'D� $—AP AA iJ We %(7�i�8) � Per Hour • 14, CALC SP Minor Changes $ Fifty thousand dollars and no cents $ 50,000.00 $ 50,000.00 (Price in Words) Per Lump Sum SUBTOTAL, SCHEDULE B 5-4A22#! 9eZ, Sales Tax a� 9.0%, SCHEDULE B S3� TOTAL BID, SCHEDULE B $, TOTAL BID: $ SALES TAX Section 1-07.2(2) shall apply to this project. Rev 1129118 ky SEC Cih! ofPorl Orchard 11,'ell 13 - Drilling Projecl, Projecl N PFI'2018-02G Permit # PK,'17-02 Z Contract # C077-18 LD-31 ConlractDocumenls Scheable ofConbnctPnces Page 96 of 202 Provided to Builders Exchange of WA, Inc. For usage Conditions Agreement see www.bxwa.com - Always Verify Scal Back to Agenda The undersigned Bidder hereby agrees to start construction on this project, if awarded, no later than twenty-one (21) calendar days after Notice to Proceed and to complete the project within the time stipulated in the Contract. By signing below, Bidder acknowledges receipt of the following Addenda to the Bid Documents: Addendum No. CITY OF PORT ORCHARD WELL 13 — DRILLING PROJECT CONTRACT NO. C077-18 11/21/18 Date of Receipt 11/21/18 Addendum No. Addendum No. Date of Receipt Addendum No. Date of Receipt Date of Receipt NOTE: Failure to acknowledge receipt of Addenda may be considered as an irregularity in the Bid Proposal and Owner reserves the right to determine whether the bid will be disqualified. By signing below, Bidder certifies that s/he has reviewed the insurance provisions of the Bid Documents and will provide the required coverage. The undersigned Bidder hereby certifies that, within the three-year period immediately preceding the bid solicitation date for this Project, the Bidder is not a "willful' violator, as defined in RCW 49.48.082, of any provision of chapters 49.46, 49.48, or 49.52 RCW, as determined by a final and binding citation and notice of assessment issued by the Department of Labor and Industries or through a civil judgment entered by a court of limited or general jurisdiction. OFFICIAL AUTHORIZED TO SIGN FOR BIDDER: "I certify (or declare) under penalty of perjury under the laws of the State of Washington that the foregoing is true and correct." Signa Date: 11 /26/18 Printed Name and Title: Location or Place Executed (City, State): Steve Schneider - Vice President St. Paul, OR Business Address: Business Telephone: 21881 River Rd. NE St. Paul, OR 97137 503-633-2666 NOTES: If the Bidder is a co -partnership, give firm name under which business is transacted; proposal must be executed by a partner. If the Bidder is a corporation, proposal must be executed in the corporate name by the president or vice-president (or any other corporate officer accompanied by evidence of authority to sign). Rev 1129118 by SEC City of Port Orchard Well 13 —Drilling Project, Project # PW2018-02ti Permit # PW17-027. Contract # C077-18 LD-32 Contract Documents Schedule of Contract Prices Page 97 of 202 STATE OF Oregon )ss. COUNTY OF Marion I certify that I know or have satisfactory evidence that Stephen J. Schneider signed this proposal, on oath stated that he/she was authorized to execute the proposal and acknowledged it as the Vice President (title) of Schneider Water Services (name of party on behalf of whom proposal was executed) and acknowledged it to be his/her free and voluntary act for the uses and purposes mentioned in this proposal. Dated this 26 day of November 2018 -- - - - mtc _ - otary Public OFFICIAL STAMP SARAN ELIZABETH MARTIN `.NOTARY PUBLIC . OREGONN COMMISSION No. 972059 MYCOMMISS[ON EXPIRES MARCH08, 2022 Sarah E. Martin Printed Name My Commission Expires: March 8, 2022 Rev 1129118 by SEC City of Port Orchard Well 13 —Drilling Project, Project # PW2018-026. Permit # PW17-027, Contract # Cb77 18 LD-33 Contract Documents Schedule of Contract Prices Page 98 of 202 This page intentionally left blank. Page 99 of 202 BIDDER'S QUALIFICATION FORM CITY OF PORT ORCHARD WELL 13 — DRILLING PROJECT CONTRACT NO. C077-18 1. Name of Contractor: Schneider Equipment Inc., dba Schneider Water Services Address: 21881 River Rd. NE St. Paul, Oregon 97137 2. Telephone No. 503 633-2666 Fax No.: 503 _ _ ).633-2668 3. Washington State Dept. of Labor and Industries Worker's Compensation Account No.: 514, 763-00 4. Washington State Dept. of Licensing Contractor's Registration No. SCHNEE1940R8 Expiration Date: 01/02/19 5. Washington State Uniform Business Identifier No. 600 202 757 (Must have UBI number before the contract is awarded.) 6. Number of years engaged in contracting business under above name: 48 7. At the time of bid submittal, did the contractor have a certificate of registration in compliance with Chapter 18.27 RCW? Yes 8. Does the contractor have industrial insurance coverage for its employees working in Washington as required in Title 51 RCW? Yes 9. Does the contractor have an employment security department number as required in Title 50 RCW? (provide number): 265248-007 10. Does the contractor have a state excise tax registration number as required in Title 82 RCW? (provide number): 600 202 757 11. Has the contractor been disqualified from bidding on any public works contract under RCW 39.06.010 or 39.12.065(3)? No 12. Until December 31, 2013, did the contractor violate RCW 39.04.370 more than one time as determined by the department of labor and industries? No 13. Within the three-year period immediately preceding the date of the bid solicitation, was the contractor (determined by a final and binding citation and notice of assessment issued by the department of labor and industries or through a civil judgment entered by a court of limited or general jurisdiction) to have willfully violated, as defined in RCW 49.48.082, any provision of chapter 49.46, 49.48, or 49.52 RCW? No 14. Has the contractor violated the "Off -site Prefabricated Non -Standard Project Specific Items" reporting requirements more than one time as determined by the department of labor and industries? No 15. Particular types of construction performed by your company: Water Well Drilling, Pump and Controls Rev 1129118 by SEC City of Port Orchard Well 13 —Drilling Project, Project # PW2018-02t5. Permit # PW17-a27. Contract # C077-18 LD-35 Contract Documents Bidder's Qualification Form Page 100 of 202 Back to Agenda 16. Gross amount of contracts now on hand: $ 2 million 17. List similar recent construction projects that your firm has done in the last 5 years (i.e., water and storm and sanitary sewer main construction, road reconstruction, excavations, extensive dewatering, etc.): Amount Type Owner's Name Phone $722,742 Well Drilling Port of Morrow 541-481-7467 $971,248 Well Drilling City of West Richland 509-967-5434 $668,404 Well Drilling City of Othello 509-488-6997 $1,049,194 Well Drilling City of Ritzville 509-659-1930 $528,122 Well Drilling Tualatin Valley Water District 503-848-3054 $791,474 Well Drilling City of Beaverton 503-526-2592 18. What is the construction experience of the principal individuals to be assigned to this project? Years of Construction Name Title Experience Availabili Steve Schneider Vice President - Tech Supporter/Driller 44 Available Jim Thompson Tool Pusher/Driller 42 Available Eric Schneider Vice President - Division and Project Manager 14 Available Pat Ivers Driller 18 Available and Others Drillers/Helpers Many Available Pursuant to RCW 39.06.020, the contractor further agrees to verify responsibility criteria for each of its subcontractors and to require each of its subcontractors to both verify responsibility criteria for its subcontractors and include instant condition for verification r uirement. By. , (Auffiorized Signature) Title: Vice President Date: 11/26/18 NOTE: Any bidder having current outstanding litigation with the City will not be considered responsible and will be rejected by the City. Rev 1129118 by SEC City of Port Orchard Well 13 —Drilling Project, Project # PW2018-026 Permit # PW17-027. Contract # C077-18 LD-36 Contract Documents Bidder's Qualification Form Page 101 of 202 Back to Agenda SELECTION OF RETAINAGE OPTION CITY OF PORT ORCHARD WELL 13 — DRILLING PROJECT CONTRACT NO. C077-18 Contract/Purchase Order Number: C077-18 Pursuant to RCW 60.2.8.011, five percent 5°/o} of all monies earned by the Contractor on estimates during the -progress -of the work shall be retained by the City for the u oses mentioned in said statute. The Contractor elects to have these monies (check one): X❑ Retained in a fund by the Owner until sixty (60) days following the final acceptance of said improvement or work is completed; ❑ Deposited by the Owner in an interest bearing account in a bank, mutual savings bank, or savings and loan association, not subject to withdrawal until after the final acceptance of said improvement or work is completed, or until agreed to by both parties: Provided that interest on such account shall be paid to the Contractor; or ❑ Placed in escrow with a bank or trust company by the Owner until sixty (60) days following the final acceptance of said improvement or work is completed. When the monies reserved are to be placed in escrow, the Owner shall issue a check representing the sum of the monies reserved payable to the bank or trust company and the Contractor jointly. Such check shall be converted into bonds and securities chosen by the Contractor and approved by the Owner and such bonds and securities shall be held in escrow. Interest on such bonds and securities shall be paid to the Contractor as the said interest accrues. Contractor hereby further agrees to be fully responsible for payment of all costs or fees incurred as a result of placing said retained percentage in escrow and investing it as authorized by statue. The City of Port Orchard shall not be liable in any way for any cost or fees in connection therewith. Name of Financial Institution Address of Financial Institution City, State, Zip Code of Financial Institution Escro,wrWecount Number 'V—Z*22f�) ��� U. P. 11 /26/18 Con tor's Signa a Date Rev 1129118 by SEC City of Porl Orchard Well 13 — Drilling Project, Project # PW2018-026 Permit # PW17-027, Contract # C077-18 LD-37 Contract Documents Selection of Relainage Option Page 102 of 202 This page intentionally left blank. Page 103 of 202 Back to Agenda BID SECURITY CITY OF PORT ORCHARD WELL, 13 — DRILLING PROJECT CONTRACT NO. C077-18 Bid Deposit: The undersigned Principal hereby submits a Bid Deposit with the City of Port Orchard in the form of a cash deposit, certified or cashier's check, or postal money order in the amount of Dollars (s Bid Bond: Sch KNOW ALL MEN BY THESE PRESENTS: That we, Wat eider Equipment, Inc d6a: 5rhneider as Principal and as Surety, are held firmly bound unto the City of Port Orchard, Washungton, as Obligee, in the penal sum of --Five Percent of Total Amount Bid-- Dollars, for the payment of which the Principal and the Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally by these presents. The conditions of this obligation are such that if the Obligee shall make any award to the Principal for Wei] 13_- 12rd in Project —, Port Orchard, Washington, according to the terms of the Proposal or Bid made by the Principal therefore, and the Principal shall duly make and enter into a contract with the Obligee in accordance with the terms of said Proposal or Bid and award and shall give bond for the faithful performance thereof, with Surety or Sureties approved by the Obligee, or if the Principal shall, in case of failure to do so, pay and forfeit to the Obligee the penal amount of the deposit specified in the call for bids, then this obligation shall be null and void; otherwise it shall be and remain in full force and effect and the Surety shall forthwith pay and forfeit to the Obligee, as penalty and liquidated damages, the amount of this Bond. Principle and Surety agree that if the Obligee is required to engage the services of an attorney in connection with enforcement of this bond each shall pay the Obligee reasonable attorney's fees, whether or not suit is commenced, in addition to the penal sum. Signed, Sealed and Dated this 5th day of November Schneider _Equipment,_ Inc d_ba: Schneider Water Services 4nc of Aut orixed Official 20 18 Travelers Casualty andSuretX Company of America Surety Signs re of Authorized Official � �� n�►� ,� V By Ty Moffett, Attorney -in -Fact T Prin ed Name and Title Attonicy-in-Fact (Attach Power of Attorney) Name and address of local office of Agent and/or Surety Company: A.G. Sadowski company OR 97303 Surety companies executing bonds must appear on the current Authorized Insurance List in the State of Washington per Section 1-02.7 of the Standard Specification. Rev 1129118 by 7-C City ofPort Orchard Well 13—DrithngProject Project#PW'2018-026. PermitgPIV17-027. Contract#C077-18 LD-39 Contract Documents BidSecnr7t1, *Travelers Casualty and Surety Company of America Pro,rided to Builders Exchange of Wh, Inc. For usage CCPA9@.i1M6,ok?Qement see www.bxwa.com - Always Verify Scal Back to Agenda Travelers Casualty and Surety Company of America A011b, Travelers Casualty and Surety Company TRAVELERS J St. Paul Fire and Marine Insurance Company POWER OF ATTORNEY KNOW ALL MEN BY THESE PRESENTS: That Travelers Casualty and Surety Company of America, Travelers Casualty and Surety Company, and St. Paul Fire and Marine Insurance Company are corporations duly organized under the laws of the State of Connecticut (herein collectively called the "Companies"), and that the Companies do hereby make, constitute and appoint Ty Moffett, of Salem, Oregon, their true and lawful Attorney -in -Fact to sign, execute, seal and acknowledge any and all bonds, recognizances, conditional undertakings and other writings obligatory in the nature thereof on behalf of the Companies in their business of guaranteeing the fidelity of persons, guaranteeing the performance of contracts and executing or guaranteeing bonds and undertakings required or permitted in any actions or proceedings allowed by law IN WITNESS WHEREOF, the Companies have caused this instrument to be signed, and their corporate seals to be hereto affixed, this 3rd day of February, 2017. WMA rY ]b cow • OD Ar W J} State of Connecticut City of Hartford ss. By: Robert L. Raney, Se or Vice President On this the 3rd day of February, 2017, before me personally appeared Robert L. Raney, who acknowledged himself to be the Senior Vice President of Travelers Casualty and Surety Company of America, Travelers Casualty and Surety Company, and St. Paul Fire and Marine Insurance Company, and that he, as such, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing on behalf of the corporations by himself as a duly authorized officer. In Witness Whereof, I hereunto set my hand and official seal. t Ttr My Commission expires the 30th day of June, 2021 riVi� 'NY � �°�' 0- t Marie C. Tetreault, Notary Public This Power of Attorney is granted under and by the authority of the following resolutions adopted by the Boards of Directors of Travelers Casualty and Surety Company of America, Travelers Casualty and Surety Company, and St. Paul Fire and Marine Insurance Company, which resolutions are now in full force and effect, reading as follows: RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President, any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary may appoint Attomeys-in-Fact and Agents to act for and on behalf of the Company and may give such appointee such authority as his or her certificate of authority may prescribe to sign with the Company's name and seal with the Company's seal bonds, recognizances, contracts of indemnity, and other writings obligatory in the nature of a bond, recognizance, or conditional undertaking, and any of said officers or the Board of Directors at any time may remove any such appointee and revoke the power given him or her; and it is FURTHER RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice President may delegate all or any part of the foregoing authority to one or more officers or employees of this Company, provided that each such delegation is in writing and a copy thereof is filed in the office of the Secretary; and it is FURTHER RESOLVED, that any bond, recognizance, contract of indemnity, or writing obligatory in the nature of a bond, recognizance, or conditional undertaking shall be valid and binding upon the Company when (a) signed by the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary and duly attested and sealed with the Company's seal by a Secretary or Assistant Secretary; or (b) duly executed (under seal, if required) by one or more Attorneys -in -Fact and Agents pursuant to the power prescribed in his or her certificate or their certificates of authority or by one or more Company officers pursuant to a written delegation of authority; and it is FURTHER RESOLVED, that the signature of each of the following officers: President, any Executive Vice President, any Senior Vice President, any Vice President, any Assistant Vice President, any Secretary, any Assistant Secretary, and the seal of the Company may be affixed by facsimile to any Power of Attorney or to any certificate relating thereto appointing Resident Vice Presidents, Resident Assistant Secretaries or Attorneys -in -Fact for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature thereof, and any such Power of Attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and binding on the Company in the future with respect to any bond or understanding to which it is attached. I, Kevin E. Hughes, the undersigned, Assistant Secretary of Travelers Casualty and Surety Company of America, Travelers Casualty and Surety Company, and St. Paul Fire and Marine Insurance Company, do hereby certify that the above and foregoing is a true and correct copy of the Power of Attorney executed by said Companies, which remains in full force and effect Dated this 5th day of November 2018 rN 7' .` µ, �� Ar L Kevin E. Hughes, Assistant Secretary To verify the authenticity of this Power ofAttorney, please call us at 1-800-421-3880. Please refer to the above -named Attorney -in -Pact and the details of the bond to which the power is attached. Page 105 of 202 This page intentionally left blank. Page 106 of 202 Back to Agenda NON -COLLUSION DECLARATION Failure to return this Declaration as part of the bid proposal package will make the bid nonresponsive and ineligible for award, NON -COLLUSION DECLARATION I, by signing the proposal, hereby declare, under penalty of perjury under the laws of the United States that the following statements are true and correct; That the undersigned person(s), firm, association or corporation has (have) not, either directly or indirectly, entered into any agreement, participated in any collusion, or otherwise taken any action in restraint of free competitive bidding in connection with the project for which this proposal is submitted. 2. That by signing the signature page of this proposal, I am deemed to have signed and to have agreed to the provisions of this declaration. To report rigging activities call: 1-800-424-9071 The U.S. Department of Transportation (USDOT) operates the above toll -free "hotline" Monday through Friday, 8-00 a-m. to 5:00 p m., eastern time. Anyone with knowledge of possible bid rigging, bidder collusion, or other fraudulent activities should use the "hotline" to report such activities. The "hotline` is part of USDOT's continuing effort to identify and investigate highway construction contract fraud and abuse and is operated under the direction of the USDOT Inspector General All information will be treated confidentially and caller anonymity will be respected_ Rev 1129118 by SEC City of Porl Orchard Well 13 — Drilling Project, Project # !'H,'2018-f1?G Permit # PW17-027. Contract # C077-18 LD-41 Contract Documents DQ? Ron M-33$M Er Revx9 606 Non -Collusion declaration Page 107 of 202 This page intentionally left blank. Page 108 of 202 Back to Agenda .&SADVANTAGED BUSINESS ENTERPRISE UTILIZATION CERTIFICATION FORM T�]�' w,sh:agtan state Disadvantaged Business •7r Department of Transportation Enterprise Utilization Certification To be eligible for award of this contract the bidder must fit' out and submit, as part of its bid proposal, the following Disadvantaged Business Enterprise Utilization Certification relating to Disadvantaged Business Enterprise tDBE) requimments. The Contracting Agency shalt consider as nonresponsive and shall reject any bid proposal that does not contain a DBE Certification which property demonstrates that the bidder will meet the DBE participation requirements in one of the -manners provided for in the proposed contract_ It the bidder Is relying on the good faith effort method to meet the DBE assigned contract goal, documentation in addition to the certificate must be submitted wrth the bid proposal as support for such efforts, The successful, bidders DBE Certification shall be deemed a part of the resulting contract. Information on certified firms is available from OMWBE, telephone 36b-753-9693• Schneider Equipment Inc., dba _Schneider Water Services certifies that the Disadvantaged Business Enterprise I:.N'Ir r1 Fla f:iN _ •-. ._...- (DBE) Firms listed belao have been contacted regarding participation on this project. If this bidder is successful on this project and is awarded the contract, 4 shall assure that subcontracts or supply agreements are executed with those firms where an 'Amount to be Applied Towards Goal" Is listed- (ll, necessary, use additlonal sheet,) Name of DBE Certificate Number Project Role • (FrWW Subcontractor, Manufacturer, R6guhr DoWal Description of Work Amount to �« be Applied Towards Goal p t N/A subcontractor No subcontractors. All work is normally performed by bidder. z TBD regular dealer Casing, screen, pack supplier, TBD 3. 4_ 5. 6. 7 8, 9 td. Disadvantaged Business Enterprise Subcontracting Goal: per contract does DBE Total S TBD Roqulni Dealer MOW must 1_�o oMove4 Prior to teed llulrm if in the (A0 of Eatuld C?Martunity, ',N+asti 1,311110 Nl.q of -lran,,Vogi turn, an G+ach crriir�Ct See Use DBE r'arUcirinbon Toward Jl%ehnq Uasp l aai" in tlw Contract r)orumeot •" The Contracting 11ewocy iYl9 ublize ttus enx ant to delemuiw wivattw or not it* hairier lips nett tale goal lla Ure uveail eat nn eariinlneUC rjlfr@panCO theleve?4?n this Halal ;Ind tray: seine of tiers ilti.Uvertual 01MAInts JISIP41 nbove Iberi Me 4u111 or trie n"u- 1fil" Isle d %1,41 prevail earxi nue t'tal will be levis A ,acr;A riirigly See attac d good faith effort. DoT Firm 272•U5t Er ran t�flr Mf P. Rev 1129118 by SEC City of Port Orchard Well 13 —Drilling Project, Project # PW2018-026. Permit # PW17-027. Contract # C077-18 GD-43 Contract Documents Disadvantaged Business Enterprise Utilization Certification Form Page 109 of 202 Back to Agenda Good Faith Efforts SWS (Schneider Water Services) routinely performs all the work related to a drilling project such as this; accordingly, there is no anticipated subcontract work. There will be materials required should the project move past the test hole phase. SWS identified casing, screen and pack as the major materials required. SWS submitted attached to OMWBE via email from their website for posting. SWS researched the OMWBE website directory for potential suppliers. After extensive searching for different materials, came up with one potential fit: PNBest for casing. SWS contacted them but received no reply at time of bid. SWS also contacted a WBE, PQ Products who is a regular dealer of well screen; however, they are not certified by OMWBE. Considering that it won't be determined if most all the materials (i.e. casing, screen, pack, etc) will be included in the contract until after the test hole is drilled and logged, which likely won't occur for 2-3 months; SWS won't know what, if any of these items will be needed. At such time that it is determined such materials are needed, SWS will again reach out to PNBest and others and exercise a 5 point good faith effort for material bids. Bidders List (ref item #12 on page LD-20) No bids or quotes on subcontracts were received. Page 110 of 202 Back to Agenda Well 13 -Drilling Project, Port Orchard WA Invitation for Bids CITY OF PORT ORCHARD WELL 13 - DRILLING PROJECT CONTRACT NO. C076-18 PROJECT NO. PW2018-026 Bid Date: 11/28/18 Bid Time: 12:00 pm Contact Information: Schneider Water Services 21881 River Road NE St. Paul, OR 97137 Office: (503) 633-2666 Contact: Steve Schneider, steve@schneiderwater.com Go to http://www.bxwa.com/,Public Works, City of Port Orchard, Well 13 — Drilling Project for specifications and plans. Closing Date: Wednesday, November 28, 2018 Page 111 of 202 Back to Agenda :vEPA EPA Project Control Number United States Environmental Protection Agency Washington, DC 20460 Certification Regarding Debarment, Suspension, and Other Responsibility Matters The prospective participant certifies to the best of its knowledge and belief that it and its principals: (a) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency. Have not within a three year period preceding this proposal been convicted of or had a civil judgement rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or (b) performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, falsification or destruction of records, making false statements, or receiving stolen property; (c) Are not presently indicted for or otherwise criminally or civilly charged by a government entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and (d) Have not within a three-year period preceding this application/proposal had one or more public transactions (Federal, State, or local) terminated for cause or default. understand that a false statement on this certification may be grounds for rejection of this proposal or termination of the award. In addition, under 18 USC Sec. 1001, a false statement may result in a fine of up to $10,000 or imprisonment for up to 5 years, or both. Stephen J. Schneider - Vice President 11/27/18 Typed Name,By title of Authorized Replf)§entative Date Signature of I am unable to certify to the above statements. My explanation is attached. EPA FORM 5700-49 (11-88) Page 112 of 202 Back to Agenda cflt �A U. i4 a SieirS ONE Can I No_ 2D4o- = 0E .a Ervirpnmeni,I Pr�ln_Fan Appruved: /13 2D13 ApprovalEspires E131/2D1S Disadvantaged Business Enterprise (DBE) Program DBE Subcontractor Participation Form An EPA Financial Assistance Agreement Recipient must require its prime contractors to provide this farm to its DBE subcontractors. This Form gives a DBE' subcontractor' the opportunity m describe w orkreceived and/or report any concerns regarding the EPA -funded project (e.g, in areas such as termination by prime uontractw, late payments, eta). The DBE subcontractor can, as an option, complete and submit this form to the EPA DBE Coordinator at any time during the project period of performance. Subcontractor Name Project Name Bid/ Proposal No. Assistance Agreement M N% [if icnown) Point of Contact Address Telephone No. Email Address Prime Contractor Name Issuing/Funding Entity: Contract Item Number Description of work Received from the Prime Contras -tor Involving Co us txtr ctiou, Services, Equipment or Supplies Amount Received by Prime Contractor h A DBE is a Disadvantaged, fA writy, or Wwnan business EnttrprLw that has been certified by an entity fimrn whkh EPA accepts eerffw2dans as desvibed in 40 CPR 33.204-33.M or certified by WX EPA pts cereYicadons hum enelties flat meet ar akmed EPA ttraficat en xrakrdwds as desnibed in 40 CPR 33.2U a Subcontractor is defined as a company, firms, jaiutwamm ormdmduid who emirs imDo an ageemw with a emiractor to provide services pursuant to art EPA award of frnaacial assistance. EPA FORM 61@fk2 (BEE SubeentraetarParticipattoa Form) Page 113 of 202 Back to Agenda A U-lmd3nams OMB ComalW-2090.0030 EreIronmenWl Praltifon 8A3J2013 f.I 111 /7�--771hpenc� ApprmW Dg fires: B, j31 j2015 Disadvantaged Business Enterprise (DBE) Program DBE Subcantractor Participation Form Please use the spare below to report any concerns regarding the above EPA-firaded project: Subcontractor $i Print Name Title Date The public reporting and recoWLeeping burden for this collection oR Information is estimated to average three (3) hours per response. Send comments on the Agency's need forthis information, the accuracy of the pro wided burden estimates, and any wgg AW methods for minimizing respondent burden, including through the use of automated collection techniques to the Mrector, Collection Strategies Division, U.S. Environmental Protection Agency (2822T),1200 Pennsylvania Ave., NW, Washingmrr, D-C. 20460. Include the OMB control number in any cnrrnspondence_ Do rot send the completed form to this address. EPA FQAfd 61042 (DBE Subcontractor Participation Fmm) Page 114 of 202 Back to Agenda 0MRCclirtrniMo:209o-O= rrlr Crworkmenrel Pmlr_ton Aaroved 8/13/2013 APF—d Fgiireet 9131/'2d15 Disadvantaged Business Enterprise (DBE) Program DBE SubcontraRas Perfarmance Form This form is intended to capture the DEE'submntractoesz description ofworkto be performed and the pride of the work submitted to the prime contractor. An EPA FinancjA Awistance Agreement Recipient must require its prune contractor to have its DBE subcontractors complete this form and include all completed forms in the prime contractors bid or proposal package. Subcontractor Name Project Name Bid/ Proposal No. Assistance Agreement M No. (if knows) Point of Contact Address Telephone No. Email Address Prime Contractor Name Issuing/Funding Entity: Contract hem Number Description of Work Submitted to the Prime Contractor Involving Construction, Services, Equipment or Supplies Price of Worst Submitted to the Prime Contractor DBE Certified By: _ DOT _SBA Meets( exceeds EPA certification standards? Other YES NO Unlmown IA OR is a Cisadvantagad, Wrwrity, or Woman Susirmw Enarprim tlat has been certified by an enmity fiam which EPA amepts eera'fic2dism ae deur bed in 40 CPR 33.204-M.ZM orcertiFed by W& EPA adepts aetiRotiensfrom eatitim that meet ar eared EPA mrricataan s zrmla cis as described in 40 CPR 332M ] Subrnnhactbrc defined as a mmpany, firm, jdrrt venture. or individual who enters into an ageenent vsith a contractarto provide mrviom purmm* to an EPA award of financial assstams_ EPA FOR14 GIW3 (DESubcoutrntttor Performance Form) Page 115 of 202 Back to Agenda �R ij �o3�rinx OMBCo�+olNw.2040-0030 C80EFA ronmLnkl Prole ton Approved:Bf13 2013 Apprwd Egdtes: BJ31/201S Disadvantaged Business Enterprise (DBE) Program DBE Subcontractor Performance Form 1 certify under pma)ty of per*w that the forgoing statements are true and correct S tgntng this form does nut signify a commitment to utilize the subcontractors above. 1 am aware of that in the event of a replacement of a subcontractor, I will adhere to the replacement requiremenU set forth in 40 CFR Part 33 Section 33.302 (e). Prime Contractor S- attire Print Name Title Date Subcontractor Signature Print Name Title Date The pubCc reporting and recordkeepeig burden for this collection of information is estimated to average three 13) hours per response. Send comments on the Agency's need for this information, the accuracy of the provided burden estimates, and any suggested methods for minimizing respondent burden, induding through the use of automated cooertion techniques to the Director, Cooection Strategies Division, U.S. Environmental Protection Agency (292211,1200 Pennsylvania Ave-, NW, Washington, D.C. 20460_ Indude the ONtB control number in any correspondence_ Do not send the completed form to this address_ EPA FORK 61W3 [DBE SobconFerfnemance Fann) Page 116 of 202 Back to Agenda ,.., APP� B ONB Coutrol Roc 20904= tat CYLl E&-nr.r,h,hndPiauh:ioh 13 /13 /� Approral Egizer B131/2015 Disadvantaged Business Enterprise (DBE) Program DBE Subcontractor Utilization Form This form is intended to capture the prime contracmr's actual and/or anticipated use of identified certified DBD subcootractorsa and the estimated dollar amatnrt of each subcontract An EPA Financial Assistance Agreement Recipient must require its prime contractors to complete this foam and include it in the bid or proposal package. Prime contractors should also maintain a copy of this form on file. Prime Contractor Name Project Name Schneider Water Services Well 13 - Drilling Project IMP7rT sal No. AssistanteAgxeeinentMNo.(ifknDwn) PointofContact {{;;QO Steve Schneider Address 21881 River Rd. NE St. Paul, OR 97137 Yelepbone No. 503-633-2666 Email Address steve@schneiderwater.com Isstung/FundingEntityt City of Port Orchard I have identified potential DBE Material Supplier; YES I No I certified subcontractors — Ifyes, please complete the table below. If no. please explain: Subcontractor Name/ Company Address/ Phone/ Email Est Dollar Currently Company Name Amt DBE Certified? PQ Products 927 E Farwell Rd. Spokane, WA 99208 TBD No 509-624-9820 paul@pgproducts.com PN Best 3414 West Lake Sammamish Pkwy. NE Redmond, WA 98052 425-882-100 TBD Yes pnbest@aol.com i'n n ti n h, a nn harlr iF nhamAorl s AWE is a Disadvan aged, Atimonty, ar W man Busines Enterprise that has hew certified by m entity horn which EPA aoeepts aeriificadam as described in 40 CFR 33204-33.205 wcertified bit EPA EPA ahxepts metificnims ham ahhbes that meet wmcand EPA rertrfi anon standards as described in 40 CFR 33-M 2 Subcamtracmr is domed as a company, Ihv4 jointventme, orhadividual who eaten inwan agreement wirhaemtracturm praridrc servicespmsuaattoanEPA award of finaketalassersnre. EPA FORK 6100-4 (DEE Subeantraetu r 17olmtion Farm) Page 117 of 202 Back to Agenda ,r • U led Sibovo OMB Central Not 2Il9141M VSP Ei�+Y.� u,",^ro,s"` Proler_Oon � n-ml: 8113MI3 V �� ■1 �! Affroial Bq&- 9/31 j201S DisadvantagedBnsmessFmterpriise (DBE) Program DBE SubcontractorIIdlizationForm I certify under penalty of perjury that the forgoing statements we true and correct Signing this form does not signify a commitment to utilize the subcontractors above. I am aware of that in the event of a replacement of a subcontractor, l will adhere to the replacement requirements set forth in 40 CFR Part 33 Section 33.302 (c). YNmeC.RM!EtffSi ature Priatmame K 1-, V"4.- Tilde Date P. /x--71,9- The public reporting and recordkeeping burden for this collection of information is estimated to average three (3) hours per response. Send comments on the Agency's need for this imhxmation, the aamracy of the provided burden estimates, and any suggested methods for minimaing respondent burden, including through the use of automated eolettion te&niques to the Director, Collection Strategies Division, U-S_ Environmental Protection Agency (2822T),1200 Pennsylvania Ave., NW, Washington, D.C. 20460_ Indude the OMB control number in any correspondence. Do not send the completed farm to this address. EPA FORM 61004 [DBE Subcontractor lkiiizadoD Farm) Page 118 of 202 This page intentionally left blank. Page 119 of 202 Back to Agenda SUBCONTRACTOR LIST WashbMten State Subcontractor List iD&peNm*M of 'i1 mnsportaeltwn Prepared in compliance with RCW 39.30.060 as arrrended To Be Submitted with the Bid Proposal Project Name City of Port Orchard Well 13 - Drilling Project Failure to list subcontractors with whom the bidder, if awarded the contract, will directly subcontract for performance of the work of heating, ventilation and air conditioning, plumbing, as described in Chapter 18.106 RCW, and electrical, as described in Chapter 19.2E RCW or naming more than one subcontractor to perform the same work will result in your bid being non -responsive and therefore void. Subcontractor(s) with whom the bidder will directly subcontract that are proposed to perform the work of heating, ventilation and air conditioning, plumbing, as described in Chapter 18.106 RCW, and electrical as described in Chapter 19.28 RCW must be listed below_ The work to be performed is to be listed below the subcontractor(s) name. To the extent the Project includes one or more categories of worst referenced in RCW 39,30,090, and no subcontractor is listed below to perform suchwork-tire bidder certifies that the work will gither jijhe performed by the bidder itself, or fill be performed by a lower tier subcontractor who will not contract directly with the bidder. Subcontractor Name No subcontractors anticipated. All work to be performed by bidder Work to be performed Subcontractor Name Work to be performed Subcontractor Name _ Work to be performed Subcontractor Name Work to be performed Subcontractor Name Work to be performed " Bidder's are notified that is the opinion of the enforcement agency that PVC or metal conduit, junction boxes, etc, are considered electrical equipment and therefore considered part of electrical work, even if the installation is for future use and no wiring or electrical current is connected during the project. SR DOT Form 271-015 EF Revised 0812012 Rev 1129118 by SEC City of Porl Orchard Well 13 — Drilling Project, Project # PW2018-026. Permit # PIV17-027. Contract # C0 7-18 LD-45 Contract Documents Subcontractor List Page 120 of 202 This page intentionally left blank. Page 121 of 202 Back to Agenda This Page Intentionally Left Blank Page 122 of 202 Agenda Item No City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Business Item 7C Agenda Staff Report Subject: Adoption of a Resolution Approving a Contract with Scarsella Brothers, Inc. for the Well 13 Site Preparation Project Meeting Date Prepared by Back to Agenda December 11, 2018 Mark Dorsey, P.E. Public Works Director Atty Routing No.: N/A Atty Review Date: N/A Summary: On October 26, 2018 and November 2, 2018, the City's Public Works Department advertised in the Port Orchard Independent, the City's Webpage and the Daily Journal of Commerce, and uploaded the Bid Documents to the Washington Builder's Exchange. By the November 28, 2018 Bid Due Date at 12:00 PM, the City received and opened nineteen (19) Sealed Bids for the Well No. 13 — Site Preparation Project. In general summary, the Sealed Bids received (applicable tax included) range from the apparent low of $530,689.39 to the apparent high of $932,558.22, with the Engineers Estimate at $820,000.00 to $870,000.00. Following the completion of the Mandatory Bidder Responsibility Checklist, it was determined that Scarsella Brothers, Inc. provided the lowest responsive and qualified Bid Proposal of $530,689.39 for the Well No. 13 — Site Preparation Project. Relationship to Comprehensive Plan: Project 7 - Utilities. Recommendation: Staff recommends that the City Council adopt a Resolution, thereby approving a Contract with Scarsella Brothers, Inc. in an amount not to exceed $530,689.39 (applicable taxes included) for the Well No. 13 — Site Preparation Project. Motion for Consideration: I move to adopt a Resolution, thereby approving a Contract with Scarsella Brothers, Inc. in an amount not to exceed $530,689.39 (applicable taxes included) for the Well No. 13 —Site Preparation Project. Fiscal Impact: Funding provided from Water Capital Fund 413. Alternatives: Do not approve. Attachments: Resolution and Contract. Page 123 of 202 Back to Agenda This Page Intentionally Left Blank Page 124 of 202 Back to Agenda RESOLUTION NO. A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, APPROVING CONTRACT NO. C076-18 WITH SCARSELLA BROTHERS, INC. FOR THE WELL #13 SITE PREPARATION PROJECT AND DOCUMENTING THE PROCUREMENT PROCEDURES. WHEREAS, on October 26, 2018 and November 2, 2018, the City's Public Works Department Advertised in the Port Orchard Independent, the City's Webpage, the Daily Journal of Commerce and uploaded the Bid Documents to the Washington Builder's Exchange, with a November 28, 2018 Bid Due Date; and WHEREAS, on November 28, 2018 by the 12:00 PM Bid deadline, the City Clerk received and opened nineteen (19) Sealed Bids, with Scarsella Brother, Inc. determined initially to be the apparent responsive Low Bid; and WHEREAS, on December 3, 2018, upon completion of the Bid Tabulation and Bidder Responsibility Checklist, it was determined that Scarsella Brothers, Inc. provided the lowest responsive and qualified Bid Proposal for the Well #13 — Site Preparation Project; and WHEREAS, the Port Orchard City Council, at the 2015 recommendation of the State Auditor's Office, wishes to document their selection/procurement process as described above for this particular contract by Resolution; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY THAT: The City Council approves Contract No. 076-18 with Scarsella Brothers, Inc. for the Well #13 - Site Preparation Project and adopts the "Whereas" statements contained herein, as findings in support of the City's selection and procurement procedures. PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested by the City Clerk in authentication of such passage on this 111h day of December 2018. ATTEST: Brandy Rinearson, MMC, City Clerk Robert Putaansuu, Mayor Page 125 of 202 XGLN"t Ma" CITY OF PORT ORCHARD WELL 13 — SITE PREPARATION PROJECT CONTRACT NO. C076-18 THIS CONTRACT ("Contract") is made and entered into this 11 day of December , 2018, by and between the City of Port Orchard, a municipality incorporated and existing under the laws of the State of Washington, hereinafter called the "City," and Scarsella Brothers, Inc. , hereinafter called the "Contractor." WITNESSETH: That the Contractor, in consideration of the covenants, agreements and payments to be performed and made by the City, hereby covenants and agrees to furnish all labor, tools, materials, equipment and supplies required for, and to execute, construct and finish in full compliance with the Contract Documents, WELL 13 — SITE PREPARATION PROJECT. The Contractor further agrees to perform all such work for the Contract Price stated in the Contractor's Bid Proposal dated 11/28/2018 , attached hereto and incorporated herein by this reference as if set forth in full. The Contract Documents, duly identified, together with the Instructions to Bidders, a confirmed copy of the Proposal made by the Contractor on11/28/2018, and the 2018 WSDOT Standard Specifications for Road, Bridge, and Municipal Construction, as modified by Amendments and Special Provisions, are hereby made a part of this Contract and are mutually cooperative therewith. Time is of the essence of this Contract. It is agreed that the work covered by this Contract shall start within 14 calendar days after Notice to Proceed is issued and that all construction shall be complete within 75 working days after the Notice to Proceed Date. It is further agreed that the City will suffer damage and be put to additional expense in the event that the Contractor shall not have the specified portions of the work completed in all its parts in the time specified, and as it may be difficult to accurately compute the amount of such damage, the Contractor expressly convents and agrees to pay to the City liquidated damages, the sum as calculated by the equation shown in Section 1-08.9 of the WSDOT Standard Specifications, for each and every working day said work is not complete beyond the time shown in the Proposal. Contractor understands that her/his bid response documents and any contract documents may be subject to release under the Public Records Act Chapter 42.56 RCW and the City may be required to disclose such documents upon a request. Contractor acknowledges that s/he has been advised to mark any records believed to be trade secrets or confidential in nature as "confidential." If records marked as "confidential" are found to be responsive to the request for records, the City as a courtesy to the Contractor, may elect to give notice to Contractor of the request so as to allow Contractor to seek a protective order from a Court. Contractor acknowledges and agrees that any records deemed responsive to a public records request may be released at the sole discretion of, and without notice by, the City. Rev 1129118 by SEC City of Port Orchard Well 13 — Site Preparation Project, PW2018-025, Permit # PW17-027 Contract # C076-18 LD-51 Contract Documents Contract S: IProjectslPort Orchardll8-10586 Well 13U Final DesignlSpecrficationslContract P2018 Front End Specs and Contract SEC 1.29.18 - Contractl.doc Page 126 of 202 With this Contract, Contractor is furnishing a Corporate Surety Bond in the amount of Dollars ($ ) with as Surety, to insure full compliance, execution and performance of this Contract by the Contractor in accordance with all its terms and provisions. In the event of litigation, venue shall be within Kitsap County, Washington. IN WITNESS WHEREOF the parties hereto have caused these presents to be duly executed. CITY OF PORT ORCHARD By: Robert Putaansuu, Mayor CONTRACTOR By: Title: Address: ATTEST: Brandy Rinearson, MMC, City Clerk APPROVED AS TO FORM: Sharon Cates, City Attorney Rev 1129118 by SEC City of Port Orchard Well 13 — Site Preparation Project, PW2018-025, Permit # PW17-027 Contract # C076-18 LD-52 Contract Documents Contract S: IProjectslPort Orchardll8-10586 Well 13U Final DesignlSpecrficationslContract P2018 Front End Specs and Contract SEC 1.29.18 - Contractl.doc Page 127 of 202 W a (Principal) PERFORMANCE AND PAYMENT BOND CITY OF PORT ORCHARD WELL 13 — SITE PREPARATION PROJECT PW PROJECT NO. PW2018-025 Bond to City of Port Orchard, Washington Bond No. a surety upon Bonds of Contractors severally bound to the City of (Surety) Corporation, and as a surety corporation authorized to become with municipal corporations in Washington State, are jointly and Port Orchard, Washington ("Owner"), in the penal sum of Dollars ($ ), the payment of which sum, on demand, we bind ourselves and our successors, heirs, administrators, executors, or personal representatives, as the case may be. This Performance Bond is provided to secure the performance of Principal in connection with a contract dated , 20_, between Principal and Owner for a project entitled WELL 13 — SITE PREPARATION PROJECT ("Project") — Public Works Project No. PW2018-025 ("Contract"). The initial penal sum shall equal 100 percent of the Total Bid Price, including all applicable state sales tax, as specified in the Proposal submitted by Principal. NOW, THEREFORE, this Performance and Payment Bond shall be satisfied and released only upon the condition that Principal: Faithfully performs all provisions of the Contract and changes authorized by Owner in the manner and within the time specified as may be extended under the Contract; Pays all laborers, mechanics, subcontractors, lower tier subcontractors, material persons, and all other persons or agents who supply labor, equipment, or materials to the Project; Pays the taxes, increases and penalties incurred on the Project under Titles 50, 51 and 82 RCW on: (A) Projects referred to in RCW 60.28.01 l(1)(b); and/or (B) Projects for which the bond is conditioned on the payment of such taxes, increases and penalties. The surety shall indemnify, defend, and protect the Owner against any claim of direct or indirect loss resulting from the failure: Of the Principal (or any of the employees, subcontractors, or lower tier subcontractors of the Principal) to faithfully perform the Contract, or Of the Principal (or any subcontractor or lower tier subcontractor of the Principal) to pay all laborers, mechanics, subcontractors, lower tier subcontractors, material person, or any other person who provides supplies or provisions for carrying out the work. The liability of Surety shall be limited to the penal sum of this Performance and Payment Bond. Principle and Surety agree that if the Owner is required to engage the services of an attorney in connection with enforcement of this bond each shall pay the Owner reasonable attorney's fees, whether or not suit is commenced, in addition to the penal sum. Rev 1129118 by SEC City of Port Orchard Well 13 — Site Preparation Project, PW2018-025, Permit # PW17-027 Contract # C076-18 LD-53 Contract Documents Performance and Payment Bond S: IProjectslPort Orchardll8-10586 Well 13U Final DesignlSpecrficationslContract P2018 Front End Specs and Contract SEC 1.29.18 - Contractl.doc Page 128 of 202 No change, extension of time, alteration, or addition to the terms of the Contract or to the Work to be performed under the Contract shall in any way affect Surety's obligation on the Performance Bond. Surety hereby waives notice of any change, extension of time, alteration, or addition to the terms of the Contract or the Work, with the exception that Surety shall be notified if the Contract time is extended by more than twenty percent (20%). If any modification or change increases the total amount to be paid under the Contract, Surety's obligation under this Performance and Payment Bond shall automatically increase in a like amount. Any such increase shall not exceed twenty-five percent (25%) of the original amount of the Performance and Payment Bond without the prior written consent of Surety. This Performance and Payment Bond shall be governed and construed by the laws of the State of Washington, and venue shall be in Kitsap County, Washington. IN WITNESS WHEREOF, the parties have executed this instrument in two (2) identical counterparts this day of , 20 Principal Surety Signature of Authorized Official Signature of Authorized Official LM Printed Name and Title Name and address of local office of Agent and/or Surety Company: Attorney in Fact (Attach Power of Attorney) Surety companies executing bonds must appear on the current Authorized Insurance List in the State of Washington per Section 1-02.7 of the Standard Specifications. Rev 1129118 by SEC City of Port Orchard Well 13 — Site Preparation Project, PW2018-025, Permit # PW17-027 Contract # C076-18 LD-54 Contract Documents Performance and Payment Bond S: IProjectslPort Orchardll8-10586 Well 13U Final DesignlSpecrficationslContract P2018 Front End Specs and Contract SEC 1.29.18 - Contractl.doc Page 129 of 202 ACKNOWLEDGEMENT Corporation, Partnership, or Individual STATE OF ) )ss. COUNTY OF ) On this day of , 20 , before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared , to me known to be the (check one of the following boxes): V corporation, 0 partnership, o individual, of , the of the that executed the foregoing instrument to be the free and voluntary act and deed of said o corporation, o partnership, o individual for the uses and purposes therein mentioned, and on oath stated that o he oshe was authorized to execute said instrument. WITNESS my hand and official seal hereto affixed the day and year first above written. Print or type name NOTARY PUBLIC, in and for the State of Washington Residing at My Commission expires: Notary Seal with Ink Stamp Rev 1129118 by SEC City of Port Orchard Well 13 — Site Preparation Project, PW2018-025, Permit # PW17-027 Contract # C076-18 LD-55 Contract Documents Acknowledgement S: IProjectslPort Orchardll8-10586 Well 13U Final DesignlSpecrficationslContract P2018 Front End Specs and Contract SEC 1.29.18 - Contractl.doc Page 130 of 202 This page intentionally left blank. Page 131 of 202 Back to Agenda SURETY ACKNOWLEDGEMENT STATE OF ) )ss. COUNTY OF ) On this day of , 20 , before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared , to me known to be the of , the corporation that executed the foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that n he o she was authorized to execute said instrument. WITNESS my hand and official seal hereto affixed the day and year first above written. Print or type name NOTARY PUBLIC, in and for the State of Washington Residing at My Commission expires: Notary Seal with Ink Stamp Rev 1129118 by SEC City of Port Orchard Well 13 — Site Preparation Project, PW2018-025, Permit # PW17-027 Contract # C076-18 LD-57 Contract Documents Surety Acknowledgement S: IProjectslPort Orchardll8-10586 Well 13U Final DesignlSpecrficationslContract P2018 Front End Specs and Contract SEC 1.29.18 - Contractl.doc Page 132 of 202 This page intentionally left blank. Page 133 of 202 CITY OF PORT ORCHARD MAINTENANCE/WARRANTY BOND Project #: PW2018-025 Surety Bond #: Date Posted: Expiration Date: RE: Project Name: Well 13 - Site Preparation Project Owner/Developer/Contractor: Scarsella Brothers, Inc. Project Address: 4940/4986 Bethel Road KNOW ALL PERSONS BY THESE PRESENTS: That we, (hereinafter called the "Principal"), and , a corporation organized under the laws of the State of , and authorized to transact surety business in the State of Washington (hereinafter called the "Surety"), are held and firmly bound unto the City of Port Orchard, Washington, in the sum of dollars ($ ) 20% of the total contract amount, lawful money of the United States of America, for the payment of which sum we and each of us bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, by these presents. THE CONDITIONS of the above obligation are such that: WHEREAS, the above named Principal has constructed and installed certain improvements on public property in connection with a project as described above within the City of Port Orchard; and WHEREAS, the Principal is required to post a bond for the twenty-four (24) months following written and final acceptance of the project in order to provide security for the obligation of the Principal to repair and/or replace said improvements against defects in workmanship, materials or installation during the twenty-four (24) months after written and final approval/acceptance of the same by the City; NOW, THEREFORE, this Maintenance Bond has been secured and is hereby submitted to the City. It is understood and agreed that this obligation shall continue in effect until released in writing by the City, but only after the Principal has performed and satisfied the following conditions: A. The work or improvements installed by the Principal and subject to the terms and conditions of this Bond are as follows: (insert complete description of work here) B. The Principal and Surety agree that the work and improvements installed in the above -referenced project shall remain free from defects in material, workmanship and installation (or, in the case of landscaping, shall survive,) for a period of twenty-four (24) months after written and final acceptance of the same and approval by the City. Maintenance is defined as acts carried out to prevent a decline, lapse or cessation of the state of the project or improvements as accepted by the City during the twenty-four (24) month period after final and written acceptance, and includes, but is not limited to, repair or replacement of defective workmanship, materials or installations. C. The Principal shall, at its sole cost and expense, carefully replace and/or repair any damage or defects in workmanship, materials or installation to the City -owned real property on which improvements have been installed, and leave the same in as good condition as it was before commencement of the work. Rev 1129118 by SEC City of Port Orchard Well 13 — Site Preparation Project, PW2018-025, Permit # PW17-027 Contract # C076-18 LD-59 Contract Documents Maintenance/Warranty Bond S: IProjectslPort Orchardll8-10586 Well 13U Final DesignlSpecrficationslContract P2018 Front End Specs and Contract SEC 1.29.18 - Contractl.doc Page 134 of 202 D. The Principal and the Surety agree that in the event any of the improvements or restoration work installed or completed by the Principal as described herein, fail to remain free from defects in materials, workmanship or installation (or in the case of landscaping, fail to survive), for a period of twenty-four (24) months from the date of approval/acceptance of the work by the City, the Principal shall repair and/replace the same within ten (10) days of demand by the City, and if the Principal should fail to do so, then the Surety shall: Within twenty (20) days of demand of the City, make written commitment to the City that it will either: a). remedy the default itself with reasonable diligence pursuant to a time schedule acceptable to the City; or b). tender to the City within an additional ten (10) days the amount necessary, as determined by the City, for the City to remedy the default, up to the total bond amount. Upon completion of the Surety's duties under either of the options above, the Surety shall then have fulfilled its obligations under this bond. If the Surety elects to fulfill its obligation pursuant to the requirements of subsection 1)(1)(b), the City shall notify the Surety of the actual cost of the remedy, upon completion of the remedy. The City shall return, without interest, any overpayment made by the Surety, and the Surety shall pay to the City any actual costs which exceeded the City estimate, limited to the bond amount. 2. In the event the Principal fails to make repairs or provide maintenance within the time period requested by the City, then the City, its employees and agents shall have the right at the City's sole election to enter onto said property described above for the purpose of repairing or maintaining the improvements. This provision shall not be construed as creating an obligation on the part of the City or its representatives to repair or maintain such improvements. E. Corrections. Any corrections required by the City shall be commenced within ten (10) days of notification by the City and completed within thirty (30) days of the date of notification. If the work is not performed in a timely manner, the City shall have the right, without recourse to legal action, to take such action under this bond as described in Section D above. F. Extensions and Changes. No change, extension of time, alteration or addition to the work to be performed by the Principal shall affect the obligation of the Principal or Surety on this bond, unless the City specifically agrees, in writing, to such alteration, addition, extension or change. The Surety waives notice of any such change, extension, alteration or addition thereunder. G. Enforcement. It is specifically agreed by and between the parties that in the event any legal action must be taken to enforce the provisions of this bond or to collect said bond, the prevailing party shall be entitled to collect its costs and reasonable attorney fees as a part of the reasonable costs of securing the obligation hereunder. In the event of settlement or resolution of these issues prior to the filing of any suit, the actual costs incurred by the City, including reasonable attorney fees, shall be considered a part of the obligation hereunder secured. Said costs and reasonable legal fees shall be recoverable by the prevailing party, not only from the proceeds of this bond, but also over and above said bond as a part of any recovery (including recovery on the bond) in Rev 1129118 by SEC City of Port Orchard Well 13 — Site Preparation Project, PW2018-025, Permit # PW17-027 Contract # C076-18 LD-60 Contract Documents Maintenance/Warranty Bond S: IProjectslPort Orchardll8-10586 Well 13U Final DesignlSpecrficationslContract P2018 Front End Specs and Contract SEC 1.29.18 - Contractl.doc Page 135 of 202 any judicial proceeding. The Surety hereby agrees that this bond shall be governed by the laws of the State of Washington. Venue of any litigation arising out of this bond shall be in Kitsap County Superior Court. H. Bond Expiration. This bond shall remain in full force and effect until the obligations secured hereby have been fully performed and until released in writing by the City at the request of the Surety or Principal. DATED this day of , 20_. SURETY COMPANY DEVELOPER/OWNER (Signature must be notarized) By: Its Business Name: Business Address: City/State/Zip Code: Telephone Number: (Signature must be notarized) By: Its Business Name: Business Address: City/State/Zip Code: Telephone Number: CHECK FOR ATTACHED NOTARY SIGNATURE Individual (Form P-1) Corporation (Form P-2) Surety Company (Form P-2) Rev 1129118 by SEC City of Port Orchard Well 13 — Site Preparation Project, PW2018-025, Permit # PW17-027 Contract # C076-18 LD-61 Contract Documents Maintenance/Warranty Bond S: IProjectslPort Orchardll8-10586 Well 13U Final DesignlSpecrficationslContract P2018 Front End Specs and Contract SEC 1.29.18 - Contractl.doc Page 136 of 202 FORM P-1 / NOTARY BLOCK (Use For Individual/Sole Proprietor Only) STATE OF WASHINGTON ) ) ss. COUNTY OF KITSAP I certify that I know or have satisfactory evidence that who appeared before me, and said person acknowledged acknowledged it to be (his/her) free and voluntary act for instrument. Dated: that (he/she) signed thi s (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: My Commission expires: Rev 1129118 by SEC City of Port Orchard Well 13 — Site Preparation Project, PW2018-025, Permit # PW17-027 Contract # C076-18 LD-62 Contract Documents Maintenance/Warranty Bond S: IProjectslPort Orchardll8-10586 Well 13U Final DesignlSpecrficationslContract P2018 Front End Specs and Contract SEC 1.29.18 - Contractl.doc Page 137 of 202 FORM P-2 / NOTARY BLOCK (Use For Partnership or Corporation Only) (Developer/Owner) STATE OF WASHINGTON ) ss. COUNTY OF ) I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged as the of that (he/she) signed this instrument, on oath stated that (he/she) was authorized to execute the instrument and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. Dated: (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: My Commission expires: FORM P-2/NOTARY BLOCK (Surety Company) STATE OF WASHINGTON ) ss. COUNTY OF ) I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged as the of that (he/she) signed this instrument, on oath stated that (he/she) was authorized to execute the instrument and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. Dated: (print or type name) NOTARY PUBLIC in and for the State of Washington, residing at: My Commission expires: Rev 1129118 by SEC City of Port Orchard Well 13 — Site Preparation Project, PW2018-025, Permit # PW17-027 Contract # C076-18 LD-63 Contract Documents Maintenance/Warranty Bond S: IProjectslPort Orchardll8-10586 Well 13U Final DesignlSpecrficationslContract P2018 Front End Specs and Contract SEC 1.29.18 - Contractl.doc Page 138 of 202 Back to Agenda PROPOSAL CITY OF PORT ORCHARD WELL 13 — SITE PREPARATION PROJECT CONTRACT NO. C076-18 To: Mayor and City Council City of Port Orchard, Washington Contractor: Searsella Bros.., Inc. State License No.: SCARSB1183B8 Date: November 28, 2018 Month/Day/Year Bidder's Declaration and Understanding The Bidder declares that s/he has carefully exannined the Contract Documents for the construction of the project, that s/he has personally inspected the site, that s/he has satisfied her/himself as to the quantities involved, including materials and equipment, and conditions of work involved, including the fact that the description of the quantities of work and materials, as included herein, is brief and is intended only to indicate the general nature of the work and to identify the said quantities with the detailed requirements of the Contract Documents, and that this Proposal is made according to the provisions and under the terms of the Contract Documents, which Documents are hereby made a part of this Proposal. The Bidder further declares that s/he has exercised her/his own judgment regarding the interpretation, of subsurface information and has utilized all data, which s/he believes pertinent from City and other sources and has made such independent investigations as the Bidder deems necessary in arriving at her/his conclusions. Bidder understands that any bid response documents may be subject to release under the Public Records Act Chapter 42.56 RCW and the City may be required to disclose bid responses upon a request. Bidder acknowledges that s/he has been advised to mark any records believed to be trade secrets or confidential in nature as "confidential." If records marked as "confidential" are found to be responsive to the request for records, the City as a courtesy to the Bidder may elect to give notice to Bidder of the request so as to allow Bidder to seek a protective order from a Court. Bidder acknowledges and agrees that any records deemed responsive to a public records request may be released at the sole discretion of, and without notice by, the City. Contract Execution The Bidder agrees that if this Proposal is accepted, s/he will, within fourteen (14) calendar days after Notice of Award, complete and sign the Contract in the form annexed hereto, and will at that time deliver to the City executed copies of the Performance Bond, Labor and Material Payment bond, the Certificate of Insurance, and other documentation required by the Contract Documents, and will, to the extent of her/his Proposal, fiunnish all machinery, tools, apparatus and other means of constriction and do the work and furnish all the materials or services necessary to complete all work as specified or indicated in the Contract Documents. Start of Construction and Contract Completion The Bidder further agrees that within 14 calendar days of the Notice to Proceed, s/he will meet with engineering personnel and begin work no earlier than the Notice to Proceed, and complete the construction within 75 working days of the Notice to Proceed. Rev 1/291'18 by SEC C ihr of Port Orchard Well 13 - Site Preparation Project, Pf "201 Y-025 Permit htfN 7-02Contl'act # COI-6-18 LD-25 Contract Documents S:!prnjeels'potf Orchurd18-10586 Well /315 Frnnl Desr,Qn iCyec�calrnru'['unlrwd l'20181 rent Eod Specs and c'orurac!S'EC 1111.18-Cunlracllaloc Page 139 of 202 Proposal Lump Sum and Unit Price Work The Bidder further proposes to accept as full payment for the work proposed herein the amounts computed under the provisions of the Contract Documents and based on lump sum and unit price amounts, it being expressly understood that the unit prices are independent of the exact quantities involved. The Bidder agrees that the lump sum prices and the unit prices represent a true measure of the labor, services, and materials required to perform the work, including all allowances for overhead and profit for each type and unit of work called for in these Contract Documents. If any material, item, or service required by the Contract Documents has not been mentioned specifically, the same shall be furnished and placed with the understanding that the full cost to the City has been merged with prices named in the proposal. Rev 1/29,118 by SEC Ohl of Port Orchard Well 13 -Site Preparation Project, Pi$'2018-025 Permit 4 PiT�J 77�027, Contract ti C7076-18 LD- 26 Contract Doci(n(ents Proposal S: !Prolec(siPort O(rbm•d!I R-/0�8G 44'e!! /9 S Finu! 6esrgn'.Specificnliurrs't'urrtruc( I l20/ N Frvnt F.7rd Seers mid C?nrhnc7 S'EC L 29J8 - ConvucU. dmc Page 140 of 202 rr SCHEDULE OF CONTRACT PRICES WELL 13 — SITE PREPARATION PROJECT NOTE: If a discrepancy between the numerical unit price and the written (words) unit price is found, the written (words) unit price shall control. Item No. Estimated Quantity SP/STD Description of Item PREPARATION Unit Price Amount 1 Lump Stun STD Mobilization �,�-'- k 4WLY1'-"A!=' $1v�%1LiY SG r�V (NOJSX�:rJ]�ili $�}1_atic.c S�T1,�ii%tJ.LY> - 4(tJ c.G�a-r orcls) (l V) Per Luunp Stun - 2 Lump Sum STD ` Clearingand Grubbing .� F�,��z r` 000A.C5 1/f CX, ' �x7 �t3, �t3 , �l/' S3�a+tZ�-Y-'��+1.>;E (Words) (2-01) Per Lump Sum 3 Lump Sum STD O strucLions Removal ofStructures ncl S F'. 4 �Li7-r � h►i��Ze7'' G ..r� . S_5'-C�C;U rx.? S 6. _c)J (Words) (2-02) Per Lump Stun GRADING 4. 4,300 CY STD Excavation Incl Haul (Words) (2-03) Per Cubic Yard 5 F. A� STD I-LU k Pavement Restoration Six Thousand Dollars and no cents S 6,000,00 S 6,000,00 (Words) Force I"CCOLHlt 6. 4,500 Tons STD Crushed Surfacing Top Course $ T•.-+F � � i`i COLA -AP- 5 A I-1 b i u � iZ � i $ Zo • ''�> U $ GI I 3 �C? , c"C.? (Words) (4-04) Per Ton 7. 2,630 Tons SP Structural Fill P'k-P'L-S Arjt) iJ'o LV+-riS $ i. e�e3 $ z t v' eJ. C� (Words) Per Ton STORM SEWER 8, 2 EA STD Catch Basin Type 2 60 In. Diam - t400�pj-)Fj $ 9 r l w5 _urn S-i _cz> SI rds i - - r F 'P-Pjb Nr1 r-V: Yr5 Per Eric}l [Words) [7-I�5 SIN 14r.� • It> 9 85 LF STD High -Density Polyethylene (HDPE) Pipe 12 In. Diam -- rN�>---- (Words) ('7-02) Per Linear Foot 10 Lump SUM STD Storm Nvater Management S - ' --t f -'i , �c� �,�o.a ►a t,� r.iE $ yy,,ue-rpyZy� rAe�>7 i.lv etl-N5 oft s) Per Lump Sum t 61('urS • O's Rev U29i13bvSEC Cull- gfpor4Orchard i41'ell 13 - Site Preparation Projecl, P6f'2018-025, Permit # PWI7-0?7, Contract # C'076-I S LD- 27 Conlr•acl Documents Schedule of Contracl Prices ,�"l'rr�lec•rsV'nrl (rrclrrrnF78-I (UR(r {Pell 1 +G Fnrul besr,gn l•r,lckudue'Ue Prcpmmrtur'.Idden dmn 1Sc6erhJe r3% ('onbtxl !'rice a-/.duw Page 141 of 202 Back to Agenda Item Estimated No. Quantity SP/STD Description of Item Unit Price Amount EROSION CONTROL AND PLANTING I 1 Lump Sum STD Erosion Control and Water Pollution Control 1 .trJS,s}f 1 -r nut) "0- (�rcis1 Per Lump Stun 12 1 0 AC STD Seeding, Fertilizing, and Mulching -'rHi��G� JSA•-i5? 'DO --Ckv- S ri0 Cyr 5 (Words) (8-01) Per Acre TRAFFIC: 13 Lump Sunl STD Project Temporary Traffic Control OXMI (1-10) Per Lump Sllln OTHER ITEMS 14- CAL STD Minor Changes $ GiV-f-i /3,,ii� I-Jv ` t5 $50,000.00 i50,000.00 (Fifty thousand dollars) (1-04) Per Estimate 15 Lump Sum STD Surveying S�F�-J "0050-J-1. _ lx-1 ", H - S 1ram,r� J. CYv S i o, Oc7C7 GY (lyds) [ l -05) Per Lump Stun 16 Lump Sum STD SPCC Plan $!]F-�� tiae�.J r+ �....Ai2. P+-' r-+� S l� [XJ $ l , Jr✓f7. CXJ auredsl ZI -07) Per Lump Stun 17 1,200 LF SP Security Fence urdU Per Linear Foot is. Lump Sum STD Trench Safety Systems $Twa �+.aNi]ia GrF�'f iavis-J�IaS $ a50' ou S 250, cX;�, H F+G �..►T�j tl�ar 3) - ) Per Lump Sum — 19 Luunp Sum STD Dewatering SOF-'.G NJ (Words) (7-093(7),,) Per Lump SLIM 20. 150 CY SP Removal of Unstable Subgrade Material 'iX_._�tre ^, 2-S $ -- f''1 -•Cz $ 2-+ 1J27.OeJ Per Cubic Yard -��----- SUBTOTAL: $ e k—T,T; -9;AV ' `1 1 . W Sales Tax Ca�9.0%: $ , �1 dr'3�g1J3, 3-1 TOTAL BID: S 4� 51 S '3ot U,e9 .39 SALES TAX Section 1-07.2(2) shall apply to this project. Rev l.29,'16 by SEC Cihv rfPorlOrchard TPell 13 - Site Preparation Project, :PlV2018-035. Permit h Pff 17-027 Contract a C0:''6-15 LU -28 Cono•act DocvmenlS ,1'rlOxi/rrls+furl Orrhurcf:LY-lOJ NC f4'e// /:�J Firrul De ngn idr/ekndu,5'ile Prepn ra0on•'.•Idclnchrru ?t1'rhechJr u/'c'onhva114ere s-1. chior Page 142 of 202 Schedate gfConlrucl Prices 11 /26/2018 QuestCDN: List Planholders R�rlr iFn AnnniJ� 209 N Havana Phone: 509-328-9600 Spokane, WA 99202 Fax: 509-328-7279 E-mail; mjeclinfa(&_? Iancenter.net Universal Industrial Sales, Inc. Makelle Baker PO Box 699 Phone: 801-785-0505 Fax: 801-785-1710 Supplier 1 11/15/2018 eBidDoc Pleasant Grove, UT 84062 Email; ntbakcrru:uisutah.com DS Brown Company Rene Leonard 3East Cherry Street Phone: 419-257-356100 Supplier I I/16/2018 eBidDoc 'North Baltimore, OH 45840 Fax: 419 257-2200 Email: rleonardCodsbrown.com Idaho AGC AGC Plan Room 1649 W Shoreline Drive, Suite 100 Phone.?.08-344-2531 Plan Roam 11/16/2018 eBidDoe 'Boise, ID 83702 Fax: 209-343-5321 Email: planroom riidahoagc.org Daily Journal of Commerce lien Elliott 183 Columbia Street Phone: 206-219-6481 Plan Room 11/16/2019 eBidDoc :suite 200 Fax: Seattle, WA 98104 Email; plaasCaldje.com Staker Parson Companies/DBA Idaho Materials & Cons Nate Stinger 'Idaho Materials and Construction 'Phone: 209-232-5706 10200 Batiste Road Fax: 208-234-4024 Prime Bidder 11/20/2018 eBidDoc (Pocatello, ID 83202 'Email: nnte.stingev4,stakerparson.com 'Western States Rebar Fabrication micali Btxlily 1525 W. Stone Field Way Phone: 901-737-3777 Subcontractor 11/21/2018 eBidDoc (Pleasant View, UT 84404 Fax: 807-737-9797 Email: hids(4wsrebar.com Cannon Builders, Inc Curtis Cannon 725 Airport Rand Phone:208-785-6281 Prime Bidder 11/21/2018 eBidDoc Blackfoot, ID 83221 Fax: 208-785-4775 Email: curds[rkcannonbuildersinc.com Scarsella Brothers, Inc. Bob Seatxella P.O. Box 68697 lFraail: Phone: 253-872-7173 Prime Bidder 11/26/2018 eBidDoc Seattle, WA 98168 Fax: 253-395-1209 eglimatin WscarseIlabros.com Page 143 of 202 https://www.questcdn.com/questcdn/projects/planholder/planholder_list.html?jobPK=6015774&printPreview=TRUE 2/2 Back to Agenda The undersigned Bidder hereby agrees to start construction on this project, if awarded, no later than fourteen (14) calendar days after Notice to Proceed and to complete the project within the time stipulated in the Contract. By signing below, Bidder acknowledges receipt of the following Addenda to the Bid Documents: Addendum No. 2 CITY OF PORT ORCHARD WELL 13 — SITE PREPARATION PROJECT CONTRACT NO. C076-18 11 /9/2018 Date of Receipt 11 /20/2018 Addendum No. Date of Receipt Addendum No. Date of Receipt Addendum No. Date of Receipt NOTE: Failure to acknowledge receipt of Addenda may be considered as an irregulariol in the Bid Proposal and Owner reserves the right to determine whether the bid will be disqualified. By signing below, Bidder certifies that s/he has reviewed the insurance provisions of the Bid Documents and will provide the required coverage. The undersigned Bidder hereby certifies that, within the three-year period immediately preceding the bid solicitation date for this Project, the Bidder is not a "willftil" violator, as defined in RCW 49.48.082, of any provision of chapters 49.46, 49.48, or 49.52 RCW, as determined by a final and binding citation and notice of assessment issued by the Department of Labor and Industries or through a civil judgment entered by a court of limited or general jurisdiction. OFFICIAL AUTHORIZED TO SIGN FOR BIDDER: "I certify (or declare) under penalty of perjury under the laws of the State of Washington that the foregoing is true and correct.", Signature: r Date: November 28, 2018 Print Name and Title: Location or Place Executed (City, State): Bob Scarsella - Vice President Kent Washington Business Address: Business Telephone: P.O. Box 68697 Seattle WA 98168 253 872 - 7173 NOTES: If the Bidder is a co -partnership, give firn name under which business is transacted; proposal must be executed by a partner. If the Bidder is a corporation, proposal must be executed in the corporate name by the president or vice-president (or any other corporate officer accompanied by evidence of authority to sign). Rer 1,129.%18 by SEC Cih' of Port Orchard Well 13 - Site Preparation Project, PW2018-025, Permit H PW17-027, Contract t C076-18 LD- 29 Contract Docimrents Schedule of Contract Prices S: I'rglecrsVPur rOrrhmei'JS'-f 0�8G Well 13'S Final 1 29.13 - Conrruca rloc Page 144 of 202 STATE OF WN ) )ss' COUNTY OF I certify that I know or have satisfactory evidence that signed this proposal, on oath stated that he/she was authorized to execute the proposal and acknowledged it as the (title) of $��Swres. \�� _ (name of party on behalf of whom proposal was executed) and acknowledged it to be his/her free and voluntary act for the uses and purposes mentioned in this proposal. Dated this a'$ day of �OAL&yV&C 201%. o'YNOTARY �N —e— PUBLIC �-97ZA Notary PuUlic Printed Name My Commission Expires. 5.• 1 • Z02.7— _ R ev I129,`18 b v SEC Cihr ofPort Orchard Well 13 —Site Preparation Project, PW2018-025, Permit # PWI'-02i, Conti'crct # C 076-18 LD-30 Conb•actDocuments Schedule o/'Conhac'tPrices d`.'/'ruieds�Port Orrbur'd'd d'- I OJN6 VGG 11 19 U Fuud 11csi en 4S�rer f cndons'['nntrucl I'2018 Fran f F.ud Specs and Conbact SEC d 3u, L y - Cunlrac!!_dac Page 145 of 202 BID ITEM MEASUREMENT AND PAYMENT Item 1. Mobilization This lump sum bid includes all preconstruction expenses and the costs of preparatory work and operations performed by the Contractor as specified in Standard Specifications Section 1-09.7. Item 2. Clearing and Grubbing This lump sum bid item includes all costs for removing and disposing of unwanted debris, vegetative matter (including trees, brush, down timber, or other natural material), and other items noted within the limits shown on the Drawings. The lump sum bid for "Clearing and Grubbing" shall be full pay for all Work described in Standard Specifications Section 2-01 and the Drawings, including the 4-foot wide path north to SE Sedgwick Road. This shall include all costs related to removing existing topsoil, stockpiling and reuse of topsoil as required for by the Drawings. Item 3. Removal of Structures and Obstructions This lump sum bid item includes all costs for removing and disposal of existing chain link fence, posts, hogwire/temporary fence, and rockwall to the limits shown on the Drawings and as specified in Standard Specifications Section 2-02. Item 4. Excavation Incl. Haul This unit rate bid item includes all costs for excavating and offsite disposal of excavation spoils, loading, placing, or otherwise disposing of the material, associated with constructing the stormwater pond, swale, swale biofiltration and site grading, as shown on the Drawings and as specified in Standard Specifications Section 2-03. Item 5. Common Borrow and Embankment Compaction This unit rate bid item includes all costs for placing, grading, and compacting the subgrade upon which the gravel pad shall be constructed. Giading and compaction shall be as shown on the Drawings and as specified in Standard Specifications Section 2-03.3(14)C. Suitable material from the work described in "Excavation Incl. Haul", as determined by the Engineer, shall be used for grading areas that are below specified grade. Item 6. Crushed Surfacing Top Course This unit rate bid item includes all costs for furnishing, placing, and compacting crushed surfacing top course (CSTC) for the gravel pad and maintenance ramp, as shown on the Drawings and as specified in Standard Specifications Section 4-04. If the Contractor opts to use 3" crushed rock for the initial 12" thick layer of the gravel pad, in lieu of CSTC, the 3" crushed rock shall be paid for under this bid item. Item 7. Structural Fill This unit rate bid item includes all costs for furnishing, placing, and compacting structural fill for the fill bean construction associated with the stormwater pond, as shown on the Drawings. Item 8. Catch Basin Type 2 60 In. Diam. This unit price bid item includes all costs for fiurnislung and installing the overflow structure and outlet control structure, as shown on the Drawings and as specified in Standard Specifications Section 7-05. Costs for catch basin bedding, backfill, overflow stricture debris cage, outlet control stricture jail house window, riser, lift gate, and pipe -to -structure connectors shall be included in the unit price. Rev 1.%29%18 bi SEC Cih% of Port Orchard Well 13 Site Preparation Project, PHT018-025. Permit 4 P1V1742Z. Contract ti C 076-18 LD-31 Conh•ad Documents Schedule q/Conhact Prices S:' /'r Wob Uhirr O iehar d 18-10586 11101 I3 U Fora! 1'7018 Fmd F.nd Specs and Coil ract SFC L29.18 - Coni•acll. rinc Page 146 of 202 Item 9. Corrugated Polyethylene Culv. Pipe 12 In. Diam. This unit price bid item includes all costs for furnishing and installing the 12-inch corrugated polyethylene (CPE) culvert pipe, as shown on the Drawings and as specified in Standard Specifications Sections 7-02 and 9-05.19. The length of culvert pipe will be the number of linear feet of completed installation measured along the invert. Pipe placed in excess of the length designated by the Engineer will not be measured or paid for. Beveled end sections will be considered as part of the culvert pipe and shall be measured as culverts. Costs for trash racks, culvert bedding, backfill, and quarry spalls at the inlet and outlet ends of the culvert shall be included in the unit price. Item 10. Stormwater Management This lump sum bid item includes all costs for constructing the level spreader, curtain drain, and rock check dam as shown on the Drawings, including furnishing drain rock, pressure treated 2x4 and 2x10 lumber, 6-inch perforated pipe, geomembrane, and geotextile. Item 11. Erosion Control and Water Pollution Control This lump sum bid item includes, but is not limited to, installation of silt fence, wattle, stabilized construction entrance, and sediment trap, as shown on the Drawings; and erosion control blanket, temporary construction fencing, high visibility fencing, tree protection, straw and hay bale barriers, check dams, catch basin inilet protection, temporary seeding, temporary mulching, and all other incidental items necessary to prevent silt -laden water from entering the ditches or storm system. This bid item also includes all payment for preparation, submission, and implementation of a Stornnwater Pollution Prevent Plan (SWPPP). The SWPPP shall be prepared by the Contractor in accordance with Washington State Department of Ecology and submitted to the Engineer prior to mobilization. Silt fence shall be as shown on the Drawings and as specified in Standard Specifications Section 8- 01.3(9)A2. Wattle shall be as shown on the Drawings and as specified in Standard Specifications Section 8-01.3(10). Stabilized construction entrance shall be as shown on the Drawings and as specified in Standard Specifications Section 8-01.3(7). Item 12. Seeding, Fertilizing, and Mulching This unit price bid item includes the material and installation costs of all pennanent seeding, fertilizing, and mulching to the limits shown on the Drawings and as specified in the Drawings and Standard Specifications Section 8-01. Item 13. Project Temporary Traffic Control This lump sum bid item includes all costs for traffic control work to be perforined by the Contractor as specified in the Standard Specifications Section 1-10. Item 14. Minor Changes The unit price Bid for Minor Changes shall be per Calculation (CALL) in accordance with Section 1-04.4(1) of the Standard Specifications, and has been included for any additional work associated with minor changes. An estimated dollar amount for Minor Changes Item has been entered in the Bid Proposal by the Owner, to provide a common proposal for all Bidders which have been figured into the Contract Sum. Payments or credits for changes amounting to $50,000 or less may be made under the bid item "Minor Changes", at the discretion of the Owner, and in accordance with Section 1-04.4(1) of the Standard Specifications. The actual amount paid under this item may vary from no payment to the fiill amount of Rev 1129118bvSEC Cih� ofPor70rchard GYell 13 - Site Preparation Project, PIV2018-625. Permit #1 flrJ' 17-02T. Contract # C 076-18 LD-32 Contract Documents Schedide ofContiactPrices S d'roled Port Oiehurd],1'-10586 Well 1 0 Fmul Design Speclficatiom Contrad 12018Fnwit F.nd Specs and C'ou6•art SFC 1.221S-C'unowakdoc Page 147 of 202 Back to Agenda the bid item. At the time of authorization, the Engineer and Contractor will agree to the basis of compensation for that work, by one of the following methods: 1. By an accepted lump sum proposal from the Contractor; 2. By Bid prices already established in the Bid Proposal; 3. By Bid prices mutually agreed upon by the Contractor and the Owner; or 4. By force account, as set forth in Section 1-09.6 of the Standard Specifications. The Owner will provide the Contractor a copy of the request for a minor change and will require the Contractor to provide a cost estimate for the Engineer's review and approval prior to the work being performed. Approved minor change work performed under tlnis bid item wilt be performed only after a work directive is issued by the Engineer. Any additional work performed prior to the work directive issued by the Engineer will not be compensated under this bid item.. Item 15. Surveying This lump sum bid item includes all costs for construction surveying to be performed by the Contractor and as specified in the Standard Specifications Section 1-05. Item 16. SPCC Plan This lump sum bid item includes all costs associated with creating and updating the accepted Spill Prevention, Control, and Countermeasures (SPCC) Plan, and all costs associated with the set up of prevention measures and for implementing the current SPCC Plan as specified in Standard Specifications Section 1-07.15(1). Item 17. Security Fence This unit price bid item includes the material and installation costs of Security Fence, including gate, as shown on the Drawings. This also includes furnishing and installing barb wire and barb wire arms on the existing fence, as shown on the Drawings. Item 18. Rockwall This lump sum bid item includes all costs for furnishing rock, gravel backfill, and perforated drain pipe; and constructing the rockwall, in accordance with the Drawings. All other costs associated with the rockwall construction, including retaining wall permitting, shall be included with this bid item. Item 19. Trench Safety Systems This lump sum bid item includes all costs for trench safety systems as specified in Specification Section 7-08. Item 20. Dewatering The lump sum bid item includes all costs for labor, tools, materials, equipment, mobilization, quality control, water quality treatment and monitoring, pen -nit fees and fines, observation wells, settlement monitoring, incidental sump pumping, and other work required or implicitly needed to provide installation, operation and abandonment and any additional pumping or testing necessary to provide a properly functioning dewatering system. Rev 1129/18 by SEC C ihr of Port Orchard Well 13 -- Site Preparation Project, Pli'20184 62S Permit # Pff'1 7-027 Contract ti L:0648 LD-33 Contract Documents Schedule of Con tract Prices S:'Prr"leclsiPorl O rrhanft18-10586 Ire 11 13%5 Fatal Oesi,Qn'•Sryeei�enh ans'(bnfract 112018 /'rvnt Llyd Specx and Conti act SEC 1, 29. 18 - C'onlrucl L doc Page 148 of 202 This page intentionally left blank. Page 149 of 202 Back to Agenda BIDDER'S QUALIFICATION FORM CITY OF PORT ORCHARD WELL 13 — SITE PREPARATION PROJECT CONTRACT NO. C076-18 1. Name of Contractor: Scarsella Bros., Inc. Address: P.O. Box 68697. Seattle. WA 98168 2. Telephone No. (_253 _) 872 - 7173 Fax No.: ( 253 ) 395 - 1209 3. Washington State Dept. of Labor and Industries Worker's Compensation Account No.: 132 332-00 4. Washington State Dept. of Licensing Contractor's Registration No. SCARSB1183B8 Expiration Date: 5/7/2019 5. Washington State Uniform Business Identifier No. 578-035-242 (Must have UBI number before the contract is awarded.) 6. Number of years engaged in contracting business under above name: 60 Years 7. At the time of bid submittal, did the contractor have a certificate of registration in compliance with Chapter 18.27 RCW? Yes 8. Does the contractor have industrial insurance coverage for its employees working in Washington as required in Title 51 RCW? Yes 9. Does the contractor have an employment security department number as required in Title 50 RCW? (provide number): 219514-00 1 10. Does the contractor have a state excise tax registration number as required in Title 82 RCW? (provide number): 578-035-242 11. Has the contractor been disqualified from bidding on any public works contract under RCW 39.06.010 or 39.12.065(3)? No 12. Until December 31, 2013, did the contractor violate RCW 39.04.370 more than one time as determined by the department of labor and industries? No 13. Within the three-year period immediately preceding the date of the bid solicitation, was the contractor (determined by a final and binding citation and notice of assessment issued by the department of labor and industries or through a civil judgment entered by a court of limited or general jurisdiction) to have willfully violated, as defined in RCW 49.48.082, any provision of chapter 49.46, 49.48, or 49.52 RCW? Nn 14. Has the contractor violated the "Off -site Prefabricated Non -Standard Project Specific Items" reporting requirements more than one time as determined by the department of labor and industries? Nn Rev 1129118 by SEC City ofPorl Orchard Well 13 —Site Preparation Project, PW2018-025. Permit #PW17-027. Contract # C076-18 LD-35 Contract Documents S.. dl roleclslPort O rchardV 8-10586 N e 1113 U Final Design lSpecificatiau Contract 1 Q018 Fmnl End Specs and Contract SEC 1.29.18 - Conlractl.doc Page 150 of 202 Back to Agenda 15. Particular types of construction performed by your company: Highway, Street, & Bridge Construction 16. Gross amount of contracts now on hand: $ 272,659,524 17. List similar recent constriction projects that your firm has done in the last 5 years (i.e., water and storm and sanitary sewer main construction, road reconstruction, excavations, extensive dewatering, etc.): Amount Type Owner's Name Phone $1,518,122.35 Mass Grading & Stormwater City of Bonny Lake 253-447-4336 $1,447,231.16 Road Construction & Waterline City of Des Moines 206-870-6539 $5,582,816.45 Road Construction & Stormwater City of Auburn 253-804-5059 $2,893,904.88 Road & Bridge Construe 'Lon City of Kent 253-856-5500 $982,701.00 Road Construction & Stormwater Port of Seattle 206-787-5747 18. What is the construction experience of the principal individuals to be assigned to this project? Years of Constriction Name Title Ex2erience Availability Mike WilI.s Project Manager 30 Year,$ immediate John Jaggi Project Superintendent 20 Years Immediate Pursuant to RCW 39.06.020, the contractor further agrees to verify responsibility criteria for each of its subcontractors and tnfreauire each of its suNcontractors to both verify resnon%ibilitv criteria fur its La (Authorized Signature) Title'. Vice President Date: November 28, 2018 Rev 1129118 bn SEC City ofport Orchard Well 13 -Site Preparation Project, PW2018-025, Permit # PW17-02Z Contrcrct # C076-18 LD-36 Conlracl Documents Bidder's Onalircalion Form S. IPmlectsl Porr O trltartAl8-10586 1 re ll 13 �-S Foud Design {Spectfrcntrotts'C'ontract I12018 Fivnt find Specs mid Conlracl SF_C 1.2218 - cowraa 1. doc Page 151 of 202 Back to Agenda NOTE: Any bidder having current outstanding litigation with the City will not be considered responsible and will be rejected by the City. Rev 1129/18bvSEC City of Port Orchard Well 13 — Site Preparation Project, P11120 Permit # PfFV 7-027, Contract # CO'6-18 LD-37 Conhact Doamrents Bidder's Qualification Form S. T injectsUPortOnrhard118-10586 Well 13 U Final Design WpecificalionsVontracl I I2Oi8FmntFndSIvvs and Coruract SEC 129.18 - Conlract! doc Page 152 of 202 This page intentionally left blank. Page 153 of 202 Back to Agenda SELECTION OF RETAINAGE OPTION CITY OF PORT ORCHARD WELL 13 — SITE PREPARATION PROJECT CONTRACT NO. C076-18 Contract/Purchase Order Number: C076-18 Pursuant to RCW 60.28.011 five percent 5% of all monies earned by the Contractor on estimates durizn the progress of the work shall be retained by tine City for the purposes mentioned in said statute. The Contractor elects to have these monies (check one): ® Retained in a fiind by the Owner until sixty (60) days following the final acceptance of said improvement or work is completed, ❑ Deposited by the Owner in an interest bearing account in a bank, mutual savings bank, or savings and loan association, not subject to withdrawal until after the final acceptance of said improvement or work is completed, or until agreed to by both parties: Provided that interest on such account shall be paid to the Contractor; or ❑ Placed in escrow with a bank or trust company by the Owner until sixty (60) days following the final acceptance of said improvement or work is completed. When the monies reserved are to be placed in escrow, the Owner shall issue a check representing the sum of the monies reserved payable to the bank or bust company and the Contractor jointly. Such check shall be converted into bonds and securities chosen by the Contractor and approved by the Owner and such bonds and securities shall be held in escrow. Interest on such bonds and securities shall be paid to the Contractor as the said interest accrues. Contractor hereby fiirther agrees to be fully responsible for payment of all costs or fees incurred as a result of placing said retained percentage in escrow and investing it as authorized by statue. The City of Port Orchard shall not be liable in any way for any cost or fees in connection therewith. Name of Financial Institution Address of Financial Institution City, State, Zip Code of Financial Institution Rev 1291118 by SEC City of Port Orchard Well 13 - Site Preparation Project, P['V2018-025. Pei7nit # PW17-027, Contract # CO76-18 LD-39 ContractDocumenls Selection ofRetainage Ophon S: iprorectsPurtOreburetf d'-IO.i86 LI'e rl 19i5 !•'oral Desr,gn �Spee f cn6ars'(.'ontraet 112018F rant End Specs and Corrlruct SEC 1 29.18 - Contract Leloc Page 154 of 202 This page intentionally left blank. Page 155 of 202 Back to Agenda BID SECURITY CITY OF PORT ORCHARD WELL 13 — SITE PREPARATION PROJECT CONTRACT NO. C076-18 Bid Deposit: The undersigned Principal hereby submits a Bid Deposit with the City of Port Orchard in the form of a cash deposit, certified or cashier's check, or postal money order in the amount of Dollars Bid Bond: KNOW ALL MEN BY THESE PRESENTS: That we, Scarsella Bros. Inc. , as Principal and Liberty Mutual Insurance Company , as Surety, are held firmly bound unto the City of Port Orchard, Washington, as Obligee, in the penal sum of Five Percent (5%) of Bid Amount Dollars, for the payment of which the Principal and the Surety bind themselves, their heirs, executors, administrators, successors and assigns, jointly and severally by these presents. The conditions of this obligation are such that if the Obligee shall make any award to the Principal for Well 13 - Site Preparation - Contract C076-18 , Port Orchard, Washington, according to the terms of the Proposal or Bid made by the Principal therefore, and the Principal shall duly make and enter into a contract with the Obligee in accordance with the terns of said Proposal or Bid and award and shall give bond for the faithful performance thereof, with Surety or Sureties approved by the Obligee, or if the Principal shall, in case of failure to do so, pay and forfeit to the Obligee the penal amount of the deposit specified in the call for bids, then this obligation shall be null and void; otherwise it shall be and remain in full force and effect and the Surety shall forthwith pay and forfeit to the Obligee, as penalty and liquidated damages, the amount of this Bond. Principle and Surety agree that if the Obligee is required to engage the services of an attorney in connection with enforcement of this bond each shall pay the Obligee reasonable attorney's fees, whether or not suit is commenced, in addition to the penal sum. Signed, Sealed and Dated this 28th day of November , 2018 Scarsella Bros. Inc. Liberty Mutual Insurance Company Principal S Signa elf thorized O al Signs, of Authorized Official By Cynthia L. Jay Printe Name and the —� Attorney -in -Fact (Attach Power of Attorney) Name and address of local office of Agent and/or Surety Company: Liberty Mutual Insurance Company 1001 - 4th Avenue, Suite 3700 Seattle, WA 98154 Surety companies executing bonds must appear on the current Authorized Insurance List in the State of Washington per Section 1-02.7 of the Standard Specification. Rev 11291'18bySEC City ofPortOrchard Well 13 -Site Preparation Project, PIV2018-025, Permit # PW17-027, Contract # C076-18 LD-41 Contract Docrlments BidSecnrlb, S: iPrnjeclsV'or!O,rhar'LA18-10586{reU 136 Final Design'Speci%rcnliorxs'C'mtlrac! 1i2018Fr l Fnd Specs and Comma SEC L79.18-CwVraciLdae Page 156 of 202 Provided to Builders Exchange of WA, Inc. For usage Conditions Agreement see www.bxwa.com - Always Verify Scal THIS POWER OF ATTORNEY IS NOT VALID UNLESS IT IS PRINTED ON RED BACKGROUND. Back This Power of Attorney limits the acts of those named herein, and they have no authority to bind the Company except in the manner and to the extent herein sta e . Certificate No. 8179424 Liberty Mutual Insurance Company The Ohio Casualty Insurance Company West American Insurance Company POWER OF ATTORNEY KNOWN ALL PERSONS BY THESE PRESENTS: That The Ohio Casualty Insurance Company is a corporation duly organized under the laws of the State of New Hampshire, that Liberty Mutual Insurance Company is a corporation duly organized under the laws of the State of Massachusetts, and West American Insurance Company is a corporation duly organized under the laws of the State of Indiana (herein collectively called the "Companies"), pursuant to and by authority herein set forth, does hereby name, constitute and appoint, Heather L Allen; James B. Binder; Brandon K. Bush; Peter J. Comfort; Carley Espiritu; Jacob T. Haddock; Diane M. Harding: Brent E. Heilesen; Kyle J. Howat; Cynthia L. Jay; Aliceon A. Keltner; Christopher Kinyon; Jamie L. Marques; Mary S. Norrell; Jan J. Oia; Annehes M. Flichie; Karen C. Swanson; all of the city of Tacoma state of WA each Individually it there be more than one named, its trite and lawful altorney-in-fact to make, execute, seal, acknowledge and deliver, for and on its behalf as surety and as its act and deed, any and all undertakings, bonds, recognizances and other surely obligations; in pursuance of these presents and shall be as biding upon the Companies as if they have been duly signed by the president and attested by the secretary of the Companies in their own proper persons. IN WITNESS WHEREOF, this Power of Attorney has been subscribed by an authorized officer or offidal of the Companies and the corporate seals of the Companies have been affixed thereto this 15th day of . August , 2018 . L�rS-1 WS1 9� � yA�. NS??l tsF w} u�H�, T. 1919 1912 x 1991 drf"�'r•vrr �Y}^n p, � � , I � fir' Wrrx�` ti STATE OF PENNSYLVANIA ss COUNTY OFMONTGOMERY The Ohio Casualty Insurance Company Liberty Mutual Insurance Company West medcafl Insurance Company By 4 David M. Carey. Assistant Secretary On this 15th day of August , 2018 before me personally appeared David M. Carey, who acknowledged himself to be the Assistant Secretary of Liberty Mutual Insurance Company, The Ohio Casualty Company, and West American Insurance Company, and that he, as such: being authorized so to do, execute the foregoing instrument for the purposes therein contained by signing on behalf of the corporations by himself as a duly authorized officer. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my notarial seal at King of Prussia, Pennsylvania, on the day and year first above written. gP PRgT COMMONWEALTH OF PENrJBYLVRNIA �4 rlwer.�F? Notarial Seal n > n ) r+ v �• r E,, a Pasfeila, Notary Public By OF oniwp.. Montgomery County Teresa Pastella, Notary Public ssion Expires March 28, 2021 46y s�C Fly " Member. Penn s ylvania Nssuria[ien of Notams This Power of Attorney is made and executed pursuant to and by authority of the following By-laws and Authorizations of The Ohio Casualty Insurance Company, Liberty Mutual Insurance Company, and West American Insurance Company which resolutions are now in full force and effect reading as follows: ARTICLE IV— OFFICERS— Section 12. Power of Attorney. Any officer or other official of the Corporation authorized for that purpose in writing by the Chairman or the President, and subject to such limitation as the Chairman or the President may prescribe, shall appoint such attorneys -in -fact, as may be necessary to act in behalf of the Corporation to make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. Such attorneys -in -Fact, subject to the limitations set forth in their respective powers of attorney, shall have full power to bind the Corporation by their signature and execution of any such instruments and to attach thereto the seal of the Corporation. When so executed, such instruments shall be as binding as if signed by the President and attested to by the Secretary_ Any power or authority granted to any representative or attorney -in -fact under the provisions of this article may be revoked at any time by the Board, the Chairman, the President or by the officer or officers granting such power or authority. ARTICLE XIII — Execution of Contracts — SECTION 5. Surety Bonds and Undertakings, Any officer of the Company authorized for that purpose in writing by the chairman or the president, and subject to such limitations as the chairman or the president may prescribe, shall appoint such attorneys -in -fact, as may be necessary to act in behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. Such attorneys -in -fact subject to the limitations set forth in their respective powers of altorney, shall have full power to bind the Company by their signature and execution of any such inslrumen ts and to altach thereto the seal of the Company. When so executed such inslruments shall be as binding as it signed by the president and attested by the secretary. Certificate of Designation — The President of the Company, acting pursuant 16 the Bylaws of the Company, aultlorizes David M. Carey, Assistant Secretary to appoint such allomeys-m- fact as may be necessary to act on behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undertakings. bonds, recognizances and other surety obligations. Authorization - By unanimous consent of the Company's Board of Directors, the Company consents that facsimile or rnecharlicatly reproduced signature of any assistant secretary of the Company. wherever appearing upon a certifled Copy of any power of altorney Issued by the Company in connection with surety bonds, shall be valid and binding upon the Company with the same force and effect as though manually affixed. I, Renee C. Lfawelfyn, the underslgned, Assistant Secrelary, The Ohio Casualty Insurance Company, Liberty Mulual Insurance Company, and West American Insurance Company do hereby certify that the original power of attorney of which the foregoing is a full, true and correct copy of the Power of Attorney executed by said Companies, is in full force and effect and has not been revoked. IN TESTIMONY WHEREOF, I have hereunto sat my Itand and affixed the seals of said Companies lhla�_ day of 0 20 I INS&q01.S �lrV ��lklrik„ _ by • rr>+fR Y� � Sa '�PC`'}Rt ;Ctr. .,��= �g>rrF ,J � 1419 0 1912. 1991 By. : w " Renee C, L ssistant Secretary k ; A 7, [a W N N C 3 .a C O C 0 U N LU C E i O CL CD Q M O tU C 0 E a� A o o r 0 C N O :C3 � to d >� Wo � N E 0? N M C o0 00 U� o Page 157 of 202 241 of 500 LM S_12873_022017 This page intentionally left blank. Page 158 of 202 Back to Agenda Failure to return this Declaration as part of the bid proposal package will make the bid nonresponsive and ineligible for award. NON -COLLUSION DECLARATION I, by signing the proposal, hereby declare, under penalty of perjury under the laws of the United States that the following statements are true and correct: That the undersigned person(s), firm, association or corporation has (have) not, either directly or indirectly, entered into any agreement, participated in any collusion, or otherwise taken any action in restraint of free competitive bidding in connection with the project for which this proposal is submitted. 2. That by signing the signature page of this proposal, I am deemed to have signed and to have agreed to the provisions of this declaration. To report rigging activities call 1-800-424-9071 The U.S. Department of Transportation (US)OT) operates the above toll -free "hotline" Monday through Friday, 8-00 a.m. to 5:00 p.m., eastern time. Anyone with knowledge of possible bid rigging, bidder collusion, or other fraudulent activities should use the "hotline" to report such activities. The "hotline` is part of USDOT's continuing effort to identify and investigate highway construction contract fraud and abuse and is operated under the direction of the USDOT Inspector General. All information will be treated confidentially and caller anonymity will be respected. DOT Form 27: 036H EF Rev setl 5J36 Rev 1129118 by SEC City ofPor-tOrchar•d Well 13 — Site Preparation Project, PW2018-025, Permit # PW17-0 77, Contract # C076-18 LD-43 Conh•act Documents Non -Collusion Declaration S: Prolects''Port O rcharall 8-10586 Well 13'S Final Design LSpectfications'Cmuraa 1 V 2018 Front End Specs and Contract SEC 1. 29. 18 - C.'ont r•ad1. doc Page 159 of 202 This page intentionally left blank. Page 160 of 202 Back to Agenda s v7�� Washington State w— Department of Transportation Disadvantaged Business Enterprise Utilization Certification To be eligible for award of this contract the bidder must fill out and submit, as part of its bid proposal, the following Disadvantaged Business Enterprise Utilization Certification relating to Disadvantaged Business Enterprise (DBE) requirements. The Contracting Agency shall consider as non -responsive and shall reject any bid proposal that does not contain a DBE Certification which properly demonstrates that the bidder will meet the DBE participation requirements In one of the manners provided for in the proposed contract. If the bidder is relying on the good faith effort method to meet the DBE assigned contract goal, documentation in addition to the certificate must be submitted with the bid proposal as support for such efforts. The successful bidder's DBE Certification shall be deemed a part of the resulting contract. Information on certified firms Is available from OMWBE, telephone 360-753-9693. �jc.�SZSE► �� F—Aga5 • , I -Je.- • certifies that the Disadvantaged Business Enterprise Name of Bidder (DBE) Firms listed below have been contacted regarding participation on this project. If this bidder is successful on this project and is awarded the contract, It shall assure that subcontracts or supply agreements are executed with those firms where an "Amount to be Applied Towards Goal" is listed. (If necessary, use additional sheet.) Name of DBE Certificate Number Project Role * {Prime, Subcontractor, Manufacturer, Regular Dealer) Description of Work Amount to ** be Applied Towards Goal 2 3. 4. 5. 6 7. 8. 9. 10. Disadvantaged Business Enterprise Subcontracting Goal: DBE Total $ .� Regular Dealer status most be approved prior to bid submittal by the Office of Equal Opportunity, Wash. State Dept of Transportation, on each contract. * See the section "Counting DBE Participation Toward Meeting the Goal" in the Contract Document *** The Contracting Agency will utilize this amount to determine whether or not the bidder has met the goal In the event of an arithmetic difference between this total and the sum of the individual amounts listed above, then the sum of the amounts listed shall prevail and the total will be revised accordingly. DOT Fonn 272-056 EF Revised 7/07 Rev 1129'1SbvSEC 0111. of Port Orchard Well 13 — Site Preparation Project, Prf'241&02 Pei -"lit # Pfr,'17-027 Conhzict # CO'6-13 LD-d.i Contract DOCnnIen Is Disach,antaged Business Entelyrise Utilisalfon Ceriffication S. ihv.lectOPon Oreha ld,18-1058G Me/I 131-201 NFrnnl lied Specs and Conoact SEC l.?u. 18 - Coulr'acil dac Page 161 of 202 Back to Agenda This page intentionally left blank. Page 162 of 202 Back to Agenda A111111111ft, Washington state :r Department of Transportation Subcontractor List Prepared in eompkance sand? RCW 39.30.060 as amended To Be Submitted with the Bid Proposal Project Name Well 13 Site Preparation Failure to list subcontractors with whom the bidder, If awarded the contract, will directly subcontract for performance of the work of heating, ventilation and air conditioning, plumbing, as described in Chapter 18.106 RCW, and electrical, as described in Chapter 19.28 RCW or naming more than one subcontractor to perform the same work will result in your bid being non -responsive and therefore void. Subcontractor(s) with whom the bidder will directly subcontract that are proposed to perform the work of heating, ventilation and air conditioning, plumbing, as described in Chapter 18.106 RCW, and electrical as described In Chapter 19.28 RCW must be listed below. The work to be performed Is to be listed below the subcontractor(s) name To the extent the Project includes one or more categories of work referenced in RCW 39.30.060, and no subcontractor Is listed below to perform such worlc, tho bldder_certifies that the workwill-0lthelr_ll) be performed by the bidder itself, or (iij be performed by a lower tier subcontractor who will not contract directly with the bidder. Subcontractor Name Work to be performed Subcontractor Name Work to be performed Subcontractor Name Work to be performed Subcontractor Name Work to be performed Subcontractor Name Work to be performed f_" r: f �i-c's " Bidder's are notified that is the opinion of the enforcement agency that PVC or metal conduit, junction loxes, etc, are considered electrical equipment and therefore considered part of electrical work, even if the Installation is for future use and no wiring or electrical current is connected during the project. SR DOT Form 271 015 EF Revised 082012 Rev 1129118 by SEC City of Port Orchard Well 13 —Site Preparation Project, PW2018-025, Permit # PW17-027, Contract # C076-I8 LD-47 Contract Documents Subcontractor List S.]ProjeclslPort0rchard]8-10586We1113UFinal Design lSpecificationsContract 1Q018Front Ends csandContractSEC1.29.13-Connracil.doc Page 163 of 02 Back to Agenda This page intentionally left blank. Page 164 of 202 Back to Agenda ;0 4 a City of Port Orchard 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 Agenda Staff Report Agenda Item No.: Business Item 7D Subject: Approval of Addendum No. 1 to Contract No. 053-18 with Waterman Investment Partners, LLC for 640 Bay Street Purchase and Sale Agreement Meeting Date: December 11, 2018 Prepared by: Sharon Cates City Attorney Atty Routing No.: N/A Atty Review Date: N/A Summary: The City ("Seller") entered into a Purchase and Sale Agreement ("Agreement") with Waterman Investment Partners, LLC ("Buyer") dated July 10, 2018, which set forth the terms of the Buyer's purchase and development of the property located at 640 Bay Street. Since that time, it has come to the parties' attention that certain revisions to the Agreement are in the interests of both. Therefore, the parties have agreed to revise the purchase price for the property, certain of the requirements of the development agreement to be entered into separately by the parties, the specific improvements to be constructed in connection with the development that will constitute valuable consideration to be provided by the Buyer, and the closing date of the Agreement. The parties have memorialized these revisions in Addendum No. 1 to the Agreement. Recommendation: Staff recommends approval of Addendum No. 1 to the 640 Bay Street Purchase and Sale Agreement as presented. Relationship to Comprehensive Plan: N/A. Motion for consideration: "I move to approve Amendment No. 1 to the 640 Bay Street Purchase and Sale Agreement as presented." Fiscal Impact: The City will be compensated $150,000 in cash at closing. In addition, through this Addendum No. 1, Waterman Investment Partners, LLC provides a contractual commitment for the construction of public improvements worth at least $266,505. Alternatives: Do not approve addendum. Attachments: Amendment No. 1 and Contract No. 053-18. Page 165 of 202 Back to Agenda This Page Intentionally Left Blank Page 166 of 202 Addendum No. 1 to REAL ESTATE PURCHASE AND SALE AGREEMENT THIS ADDENDUM NO. 1 to the Real Estate Purchase and Sale Agreement for the property located at 640 Bay Street, Port Orchard, Kitsap County, Washington, is executed by and between Waterman Investment Partners, LLC, a Washington Limited Liability Company hereafter ("Buyer") and the City of Port Orchard, a municipal corporation organized under the laws of the State of Washington (hereafter "Seller"). WHEREAS, Buyer and Seller entered into the above referenced Real Estate Purchase and Sale Agreement, dated July 10, 2018, which is attached hereto and incorporated herein by this reference ("Agreement"); and WHEREAS, Section 16 of the Agreement provides that it may be amended or modified by a written instrument executed by Buyer and Seller; and WHEREAS, Section 6.1 of the Agreement sets forth the Closing Date requirements of the parties, and provides that the parties may agree in writing to a later closing date than the originally anticipated closing date of December 31, 2018; and WHEREAS, the parties agree that it is in the best interests of both to amend the purchase price, development agreement, and improvement construction provisions of the Agreement, and to extend the closing date beyond December 31, 2018; and WHEREAS, the parties wish to memorialize their agreement to amend these provisions of the Agreement; NOW, THEREFORE, Buyer and Seller agree as follows: 1. Section 2.2 of the Agreement is hereby amended to read as follows: Purchase price. The purchase price for the Property (the "Purchase Price") includes a One Hundred Fifty Thousand Dollar ($150,000.00) cash payment, of which the Earnest Money is a part, plus other valuable consideration in the form of economic, public and other benefits as agreed to between the parties in a separate development agreement, for valuable consideration totaling of Four Hundred Sixteen Thousand Five Hundred and Five Dollars ($416,505.00). The One Hundred Fifty Thousand Dollar ($150,000.00) cash payment, including the Earnest Money, will be paid by the Buyer to the Seller in cash through escrow at closing. Page 167 of 202 2. Section 4.1 of the Agreement is hereby amended to read as follows: Development Agreement. The parties agree that closing may take place only upon the execution of a development agreement ("Development Agreement") between the parties for the development of the Property. The Development Agreement must demonstrate the Two Hundred Sixty -Six Thousand Five Hundred and Five Dollars ($266,505.00) (excluding the $150,000 cash payment pursuant to section 2.2 of this agreement) in other valuable consideration contemplated in the purchase price for the Property. If the Development Agreement fails to demonstrate this entire amount, Buyer shall pay to Seller the difference in cash at closing. 3. Section 5.5.1.6 of the Agreement is hereby amended to read as follows: Construct the following improvements at a minimum cost to the Buyer as follows: Item Description Cost 1 Prospect Street to Bay Street Pedestrian Hill $101,900.00 Climb (Construct a staircase and pedestrian way between Bay Street and Prospect Street) 2 Sidewalk (ADA accessibility) improvements 38,230.00 between 640 Bay Street and the Bay Street Pedestrian Pathway 3 Public Plaza @ Prospect (minimum 3,000 $126,375 square feet) Totals $266,505.00 4. Section 6.1 of the Agreement is hereby amended to read as follows: Closing date. This transaction will be closed in escrow by Title Company acting as escrow agent ("Escrow Agent"). The closing will be held at the offices of Title Company on or before that date which is thirty (30) days after the execution of the Development Agreement and the expiration of any applicable appeal period related thereto, but in any event no later than June 30, 2019 (the "Closing Date"). If closing does not occur on or before the Closing Date, or any later date mutually agreed to in writing by Seller and Buyer, Escrow Agent will immediately terminate the escrow, forward the Deposit to the party entitled to receive it as provided in this Agreement and return all documents to the party that deposited them. 5. In all other respects, the Agreement between the parties shall remain in full force and effect, amended as set forth herein, but only as set forth herein. Page 168 of 202 IN WITNESS WHEREOF, the parties have executed this Addendum No. 1 this I11h day of December 2018. WATERMAN INVESTMENT PARTNERS, LLC (BUYER): Steve Sego, Sole Member CITY OF PORT ORCHARD (SELLER): Robert Putaansuu, Mayor ATTEST/AUTHENTICATED: Brandy Rinearson, MMC, City Clerk APPROVED AS TO FORM: Sharon Cates, City Attorney Page 169 of 202 Back to Agenda REAL ESTATE PURCHASE AND SALE AGREEMENT This REAL ESTATE PURCHASE AND SALE AGREEMENT ("Agreement") is entered into by and between Waterman Investment Partners, LLC, a Washington limited liability company, its successors or assigns ("Buyer") and the City of Port Orchard, a Washington municipal corporation, its successors or assigns ("Seller"), as of the date appearing in the last paragraph of this Agreement ("Effective Date"). Buyer and Seller may hereafter be known individually as "Party" and collectively as "Parties." RECITALS A. Seller owns certain real property in Port Orchard, Kitsap County, Washington, more particularly described in Exhibit A and depicted in Exhibit B attached hereto (the "Property"). B. Seller advertised a Request for Proposals ("RFP") for the purchase and redevelopment of the Property. C. Buyer submitted the winning proposal ("Proposal") for the purchase and redevelopment of the Property, which is located in downtown Port Orchard. D. The parties agree that the acquisition of the Property is the first step in the redevelopment of the Property and that Buyer shall be required to undertake a Mixed - Use Pilot Program ("MUPP") redevelopment project, substantially as set forth in the Buyer's Proposal. E. Seller desires to sell the Property (as defined herein) to Buyer, and Buyer desires to purchase the Property from Seller on the terms and conditions set forth in this Agreement. F. The parties agree that the purchase price for the Property shall be a combination of U.S. funds and other valuable consideration conferred on the City as a direct result of the development of the Property. NOW, THEREFORE, intending to be legally bound, for good and valuable consideration, including the mutual covenants and promises of the Parties, the adequacy and receipt of which is hereby acknowledged, the Parties agree as follows: 1. Property. Seller agrees to sell and convey to Buyer and Buyer agrees to purchase from Seller, subject to the terms and conditions set forth in this Agreement, the following: 1.1 Land. That certain parcel of real property located in the City of Port Orchard, Kitsap County, Washington, more particularly described in Exhibit A attached to this Agreement, together with all mineral, oil, gas, hydrocarbon substances, development rights, air rights, water rights, and water stock owned by Seller relating to the real property; all easements and rights of way owned by Seller that are appurtenant to the real property or any improvements on the Page 1 of 19 Page 170 of 202 Back to Agenda real property, and any appurtenance, or the operation, use or enjoyment of any of the foregoing, all rights of Seller in and to streets, sidewalks, alleys, driveways, parking areas, and areas adjacent thereto or used in connection therewith and any land lying in the bed of any existing or proposed street adjacent to such land (collectively the "Land"); 1.2 Improvements. Any and all fixtures, structures, landscaping, and other improvements located upon the Land (the "Improvements"); 1.3 Plans, Permits and Contracts. All surveys of, and environmental reports with respect to, the Real Property; all plans, specifications, engineering drawings, and prints relating either to the construction of the Improvements or to future development and expansion of existing Improvements (the "Plans"); all licenses and permits pertaining to the Property, to the extent assignable, (the "Permits"); and all warranties upon the Improvements and Personal Property; all service, maintenance, management and operating agreements affecting the Property (to the extent Buyer elects to assume such) (the "Contracts"). The Land and Improvements that constitute real property are collectively referred to in this Agreement as the "Real Property." All of the property described in this Section 1, both real and personal, is collectively referred to in this Agreement as the "Property." 2. Deposit; Purchase Price. 2.1 Deposit. Within five (5) business days after the date on which the last party executes this Agreement (the "Effective Date"), Buyer shall execute and deliver to Land Title Company of Kitsap in Port Orchard, Washington ("Title Company"), as escrow agent for the closing of this transaction, a promissory note (the "Earnest Money Note") in the amount of Fifteen Thousand Dollars ($15,000.00). The Earnest Money Note will be converted to cash upon the expiration of the Due Diligence Period (as defined in Section 5.1) (the "Deposit") and will be paid or delivered as earnest money (the "Earnest Money") in part payment for the purchase price of the Property. The Deposit will be held by Title Company for the benefit of the parties pursuant to the terms of this Agreement. Interest will accrue on the Deposit for the benefit of Buyer; provided, however, if Buyer forfeits the Deposit to Seller pursuant to the terms of this Agreement, then all interest accrued on the Deposit will be paid to Seller. 2.2 Purchase price. The purchase price for the Property (the "Purchase Price") includes a One Hundred Fifty Thousand Dollar ($150,000.00) cash payment, of which the Earnest Money is a part, plus other valuable consideration in the form of economic, public and other benefits as agreed to between the parties in a separate development agreement, for valuable consideration totaling Three Hundred Forty Two Thousand Eight Hundred Eighty Five Dollars ($342,885.00). The One Hundred Fifty Thousand Dollar ($150,000.00) cash payment, including the Earnest Money, will be paid by the Buyer to the Seller in cash through escrow at closing. 3. Title to Real Property. 3.1 Conveyance. At closing, Seller shall convey to Buyer fee simple title to the Real Property by duly executed and acknowledged statutory warranty deed (the "Deed"), free Page 2of19 Page 171 of 202 Back to Agenda and clear of all defects and encumbrances and subject only to those exceptions that Buyer approves pursuant to Section 3.2 below (the "Permitted Exceptions"). 3.2 Preliminary commitment. Buyer shall order a preliminary commitment for an owner's standard coverage policy of title insurance (or, at Buyer's election, an owner's extended coverage policy of title insurance) in the amount of the Purchase Price to be issued by Title Company and accompanied by copies of all documents referred to in the commitment (the "Preliminary Commitment"). Buyer shall advise Seller by written notice what exceptions to title, if any, are disapproved by Buyer ("Disapproved Exceptions") within fifteen (15) days of receipt of the Preliminary Commitment and legible copies of all exceptions to title shown in the Preliminary Commitment. All monetary encumbrances other than non -delinquent ad valorem property taxes will be deemed to be disapproved. Seller will have ten (10) days after receipt of Buyer's notice to give Buyer notice that (i) Seller will remove Disapproved Exceptions or (ii) Seller elects not to remove Disapproved Exceptions. If Seller fails to give Buyer notice before the expiration of the ten (10) day period, Seller will be deemed to have elected not to remove Disapproved Exceptions. Notwithstanding anything to the contrary in this Agreement, Seller shall remove from title on or before the Closing Date all monetary encumbrances other than those approved by Buyer. If Seller elects not to remove any nonmonetary Disapproved Exemptions, Buyer will have until the expiration of the Due Diligence Period to notify Seller of Buyer's election either to proceed with the purchase and take the Property subject to those exceptions, or to terminate this Agreement. If Seller gives notice that it will cause one or more nonmonetary exceptions to be removed but fails to remove any of them from title on or before the Closing Date, Buyer will have the right to either (i) elect to terminate this Agreement by written notice to Seller or (ii) proceed with the purchase, with an abatement of the Purchase Price equal to the actual cost of removing from title those exceptions not approved by Buyer, and to take the Property subject to those exceptions. If the Title Company issues a supplement to the Preliminary Commitment, the procedure set forth in this Section 3.2 will apply to such supplement, except that Buyer will have seven (7) days to notify Seller of its disapproval of any new exceptions, and Seller will have five (5) days to give Buyer notice that Seller will either remove or not remove any new Disapproved Exceptions. If Buyer elects to terminate this Agreement under this Section 3.2, the escrow will be terminated, the Deposit must be returned immediately to Buyer, all documents and other funds will be returned to the Party who deposited them, and neither party will have any further rights or obligations under this Agreement except as otherwise provided in this Agreement. If this Agreement is terminated through no fault of Seller, then Seller and Buyer shall share equally any costs of terminating the escrow and any cancellation fee for the Preliminary Commitment. 3.3 Title policy. Seller shall cause Title Company to issue to Buyer at closing an extended coverage owner's policy of title insurance (or, at Buyer's election, an owner's standard coverage policy of insurance) insuring Buyer's title to the Real Property in the full amount of the Purchase Price subject only to the Permitted Exceptions (the "Title Policy"). The Title Policy must be dated as of the Closing Date. Page 3 of 19 Page 172 of 202 Back to Agenda 4. Conditions to Closing. 4.1 Development Agreement. The parties agree that closing may take place only upon the execution of a development agreement ("Development Agreement") between the parties for the development of the Property. The Development Agreement must demonstrate the One Hundred Ninety Two Thousand Eight Hundred Eighty Five Dollars ($192,885.00) (excluding the $150,000.00 cash payment pursuant to section 2.2 of this Agreement) in valuable consideration as set forth in Section 5.5, below, contemplated in the Purchase Price for the Property. If the Development Agreement fails to demonstrate this entire amount, Buyer shall pay to Seller the difference in cash at closing. 4.2 Due diligence materials. Seller shall provide to Buyer, or make available to Buyer for inspection, as soon as possible (but in any event no later than thirty (30) days after the Effective Date) all materials specified in this Section 4.2 that exist and that are in Seller's actual possession or that Seller knows exist and to which Seller has access (collectively, the "Due Diligence Materials"). If Seller thereafter discovers any additional items that should have been included among the Due Diligence Materials, Seller shall promptly deliver them to Buyer. Due Diligence Materials will include: (a) copies of any existing and proposed easements, covenants, restrictions, agreements or other documents that, to Seller's knowledge, affect title to the Real Property and that are not disclosed by the Preliminary Commitment; (b) all surveys, plats or plans relating to the Real Property; (c) all warranties and guarantees affecting any portion of the Property; (d) notice of any existing or threatened litigation affecting or relating to the Property and copies of any pleadings with respect to that litigation; (e) all issued Permits that the seller possesses; and (f) (i) all environmental assessment reports with respect to the Real Property that were performed or are being performed by or for Seller, (ii) any raw data that relates to the environmental condition of the Real Property, (iii) any governmental correspondence, orders, requests for information or action and other legal documents that relate to the presence of Hazardous Material (as defined in Section 10.1.2) on, in or under the Real Property, and (iv) any other information material to the environmental condition or potential contamination of the Real Property. 5. Due Diligence. 5.1 Due diligence period. On or before November 30, 2018 (the "Due Diligence Period"), Buyer shall conduct a review with respect to the Property and satisfy itself with respect to the condition of and other matters related to the Property and its suitability for Buyer's intended use (the "Due Diligence"). Page 4 of 19 Page 173 of 202 Back to Agenda The Due Diligence may include all inspections and studies Buyer deems necessary or desirable, in its sole discretion. Buyer and Buyer's agents, representatives, consultants, architects and engineers will have the right, from time to time, from and after the date of this Agreement to enter onto the Real Property and make borings, drive test piles and conduct any other tests and studies that may be necessary or desirable to ascertain the condition and suitability of the Real Property for Buyer's intended use. Buyer shall protect, defend and indemnify Seller from and against any construction or other liens or encumbrances arising out of or in connection with its exercise of this right of entry and shall cause any such liens or encumbrances to be promptly released. Buyer shall provide 48 hours notice of any proposed onsite exploration, including geotechnical exploration. All exploration shall be at buyers expense and shall include restoration of any onsite disturbance. 5.2 Termination of Agreement. Buyer will have the right to terminate this Agreement if, in Buyer's good faith judgment, the Real Property is not suitable for Buyer's intended use or does not meet Buyer's intended investment objectives. Buyer's right to terminate must be exercised by delivering written notice of its election to Seller on or before the expiration of the Due Diligence Period. In the event Buyer does not complete the purchase, Buyer shall return the Real Property as near as is practicable to its original condition. If Buyer terminates this Agreement pursuant to this Section 5.2, the Deposit will be returned to Buyer, this Agreement will terminate, and Seller and Buyer will be released from all further obligation or liability hereunder, except as otherwise specified by this Agreement. 5.3 Buyer's contingencies. Buyer's obligation to purchase the Property is expressly contingent upon the following: 5.3.1. Due Diligence. Buyer's approval, prior to expiration of the Due Diligence Period, of the suitability of the Property as a result of the Due Diligence; 5.3.2. Appraisal. Buyer's review and approval, prior to expiration of the Due Diligence Period, of the appraisal of the Property to support the purchase price; 5.3.3. Environmental condition. Buyer's approval, prior to expiration of the Due Diligence Period, of the environmental condition of the Real Property pursuant to Section 10.4; 5.3.4. Title Policy. Buyer's receipt of Title Company's firm commitment to issue, upon closing, the Title Policy as described in Section 3; 5.3.5. Representations and warranties. All of Seller's representations and warranties contained in or made pursuant to this Agreement being true and correct when made, and as of the Closing Date; 5.3.6. Seller's compliance. Seller's timely performance of all of its obligations under this Agreement; provided, however, that Seller will be given notice of any failure on its part to perform obligations pursuant to Seller's warranties made in Section 9.1 and those obligations required of it during the Due Diligence Period, and will have a period of time that is reasonable under the circumstance to cure its nonperformance; and Page 5 of 19 Page 174 of 202 Back to Agenda The foregoing conditions are collectively referred to in this Agreement as "Buyer's Contingencies." 5.4. Satisfaction/waiver of buyer's contingencies. Buyer's Contingencies are solely for the benefit of Buyer. If any of Buyer's Contingencies are not timely satisfied, Buyer will have the right at its sole election either to waive any of them in writing and proceed with the purchase or to terminate this Agreement. If Buyer elects to terminate this Agreement, the escrow will be terminated, the Deposit must immediately be returned to Buyer, all documents and other funds will be returned to the parry who deposited them, and neither party will have any further rights or obligations under this Agreement, except as otherwise provided in this Agreement, and except that each party shall pay one-half (1/2) of the cost of terminating the escrow. 5.5. Seller's contingency. The Seller's obligation to sell the Property to the Buyer is expressly contingent upon the Buyer's entry into the Development Agreement with the Seller for the redevelopment of the Property as part of the City of Port Orchard's MUPP, to include substantially the terms set forth in the Buyer's Proposal submitted in response to the Seller's RFP. The Development Agreement will document the additional consideration to be conveyed by the Buyer to the Seller in the form of economic, public and other benefits, which is an essential element of the purchase price of the Property. 5.5.1 The Development Agreement must include an agreement by Buyer to, at a minimum: 5.5.1.1 Submit a building permit application to develop a mixed use building pursuant to the MUPP, which the Seller will authorize the Buyer to do on behalf of the "owner" of the Property before closing; and 5.5.1.2 Begin construction on the MUPP redevelopment project within thirty (30) months of the execution of this Purchase and Sale Agreement; and 5.5.1.3 Develop a mixed -use building containing a minimum of 8,000 square feet of commercial/library space and 30 dwelling units, which is in compliance with MUPP requirements and the City of Port Orchard Design Standards; and 5.5.1.4 Reconstruct all sidewalks along the 640 Bay Street property frontages; and 5.5.1.5 Reconstruct any sidewalks or sidewalk ramps required to provide continuous 6 foot wide sidewalks and crosswalks meeting ADA access standards between the 640 Bay Street property and either the Port Orchard foot ferry dock or the Bay Street Pedestrian Path; and 5.5.1.6 Construct the following improvements at a minimum cost to the Buyer as follows: Page 6of19 Page 175 of 202 Back to Agenda Item Description Cost 1 Frederick Hill Climb (Construct a plaza/staircase in $101,900.00 the Frederick ROW between Bay Street and Prospect Street 2 Water Main Replacement within the Frederick and 35,905.00 Prospect ROW (Continuous weld HDPE minimum 200 feet in length connecting mains/utility crossings in Bay Street and Prospect Street 3 Sidewalk (ADA accessibility) improvements between 38,230.00 640 Bay Street and the Bay Street Pedestrian Pathway 4 Public Plaza Prospect minimum 400 square feet $16,850.00 Totals 1 $192,885.00 5.5.2 The Development Agreement shall additionally stipulate the following: 5.5.2.1 The City shall grant no impact fee credits (School, fire, transportation, or parks) related to the previous use or building at 640 Bay Street. 5.5.2.2 The City shall recognize the value of the previous water and sewer utility connections providing water and sewer service to the previous building located at this site. 5.5.3 The Development Agreement may allow for the expansion of the project onto contiguous properties. 5.6. Satisfaction/waiver of Seller's contingency. This Seller's contingency is solely for the benefit of the Seller. If this contingency is not timely satisfied, or if the Port Orchard City Council fails to approve the Development Agreement, Seller will have the right at its sole election either to waive the contingency in writing and proceed with the purchase or to terminate this Agreement. If Seller elects to terminate this Agreement, the escrow will be terminated, the Deposit must immediately be returned to Buyer, all documents and other funds will be returned to the party who deposited them, and neither party will have any further rights or obligations under this Agreement, except as otherwise provided in this Agreement, and except that each party shall pay one-half (1/2) of the cost of terminating the escrow. 6. Closing. 6.1 Closing date. This transaction will be closed in escrow by Title Company acting as escrow agent ("Escrow Agent"). The closing will be held at the offices of Title Company on or before that date which is thirty (30) days after the execution of the Development Agreement and the expiration of any applicable appeal period related thereto, but in any event no later than December 31, 2018 (the "Closing Date"). If closing does not occur on or before the Closing Date, or any later date mutually agreed to in writing by Seller and Buyer, Escrow Agent will immediately terminate the escrow, forward the Deposit to the party entitled to receive it as provided in this Agreement and return all documents to the party that deposited them. Page 7of19 Page 176 of 202 Back to Agenda 6.2 Closing. 6.2.1 Seller's escrow deposits. On or before the Closing Date, Seller shall deposit into escrow the following: (a) the duly executed and acknowledged Deed; (b) a duly executed and completed Real Estate Excise Tax Affidavit; (c) a non -foreign affidavit pursuant to Section 1445 of the Internal Revenue Code; (d) any other documents, instruments, records, correspondence and agreements called for hereunder that have not previously been delivered; and (e) a certificate reaffirming as of the Closing Date that all of Seller's representations and warranties under this Agreement are true and correct. 6.2.2 Buyer's escrow deposits. On or before the Closing Date, Buyer shall deposit into escrow the following: (a) cash or immediately available funds in an amount sufficient to pay the One Hundred Fifty Thousand Dollars ($150,000.00) cash payment portion of the Purchase Price, plus Buyer's share of closing costs; (b) a duly executed Development Agreement, per Section 5.5 above; (c) a duly executed and completed Real Estate Excise Tax Affidavit; (d) any other documents or instruments Buyer is obligated to provide pursuant to this Agreement (if any) in order to close this transaction; and (e) a certificate reaffirming as of the Closing Date that all of Buyer's representations and warranties under this Agreement are true and accurate. 6.2.3 Additional instruments and documentation. Seller and Buyer shall each deposit any other instruments and documents that are reasonably required by Escrow Agent or otherwise required to close the escrow and consummate the purchase and sale of the Property in accordance with this Agreement. 6.3 Closing costs. 6.3.1 Seller's costs. Seller shall pay the premium for a standard coverage owner's policy of title insurance in the full amount of the Purchase Price, State of Washington real estate excise taxes applicable to the sale, and one-half of Title Company's escrow fee. Page 8 of 19 Page 177 of 202 Back to Agenda 6.3.2 Buyer's costs. Buyer shall pay the additional premium, if any, attributable to the extended coverage owner's policy of title insurance (if elected by Buyer) and any endorsements required by Buyer, the cost of recording the Deed and one-half of Title Company's escrow fee. 6.4 Foreign Investment in Real Property Tax Act. The parties agree to comply in all respects with Section 1445 of the Internal Revenue Code and the regulations issued thereunder (the "Regulations"). If Seller is not a "foreign person" (as defined in the Regulations), Seller shall deliver to Buyer through escrow a nonforeign certificate as prescribed by the Regulations, properly executed and in form and content satisfactory to Buyer. If Seller is a "foreign person" or fails or refuses to deliver the nonforeign certificate, or if Buyer receives notice, or has actual knowledge, that the non -foreign certificate is false, a tax equal to 10% of the Purchase Price will be withheld through escrow and paid by Escrow Agent to the Internal Revenue Service in the manner prescribed by the Regulations, unless withholding is reduced or excused in the manner prescribed by the Regulations. In the event of any withholding, Seller's obligations to deliver title and close this transaction will not be excused or otherwise affected. 7. Adjustments and Prorations. The following adjustments and prorations will be made as of 12:01 a.m. on the Closing Date (with Buyer either responsible for or entitled to a credit for, as the case may be, the actual Closing Date). 7.1. Property taxes. All property taxes payable in the year of closing and assessments approved by Buyer, if any, will be prorated as of the Closing Date. 7.2. Utilities. All gas, electric and other utility charges will be prorated as of the Closing Date. 7.3. Accounts payable. Except as may be otherwise agreed by Seller and Buyer in writing, all sums due for accounts payable that were owing or incurred in the maintenance or operation of the Property prior to the Closing Date will be paid by Seller on or prior to the Closing Date or adequate provisions reasonably satisfactory to Buyer will be made in respect to such payment. Seller agrees to indemnify and hold Buyer harmless with respect to all such obligations. Buyer shall furnish to Seller for payment promptly following receipt any bills to be paid by Seller. Except as may otherwise be agreed to by Seller and Buyer in writing, all accounts payable incurred on or after the Closing Date with respect to the Property will be paid by Buyer and Buyer agrees to indemnify Seller with respect thereto. 8. Seller's Covenants. 8.1 Covenant to operate and maintain. Prior to the Closing Date, Seller shall maintain, repair, manage and operate the Property in a businesslike manner in accordance with Seller's prior practices and Seller shall not dissipate any portion of the Property. Seller shall keep the Property insured in accordance with Seller's prior practices up to the Closing Date. Page 9 of 19 Page 178 of 202 9. Representations and Warranties. 9.1 Seller's representations and warranties. Seller represents and warrants to Buyer as follows: (a) Seller has full power and authority to convey the Property to Buyer. (b) To the best of Seller's knowledge, the Property is now, or will be as of the Closing Date, in compliance in all material respects with all applicable zoning, land - use, building, construction, subdivision and other local, state and federal laws, ordinances and regulations and with all existing covenants, conditions, restrictions and easements. (c) To the best of Seller's knowledge, all Due Diligence Materials and other instruments and documents delivered to Buyer pursuant to this Agreement (the "Warranted Materials") are complete and accurate originals or copies, and Seller shall advise Buyer in writing of any inaccuracies in the Warranted Materials as Seller becomes aware of them. With respect to all other instruments and documents delivered or required to be delivered to Buyer by Seller pursuant to this Agreement, Seller has not purposefully altered or withheld any of them. (d) Seller has not received notice of any special assessment or condemnation proceedings affecting the Property. (e) To the best of Seller's knowledge, there is no litigation pending or threatened against Seller (or any basis for any claim) that arises out of the ownership of the Property and that might materially and detrimentally affect (i) the use or operation of the Property for Buyer's intended use, or (ii) the ability of Seller to perform its obligations under this Agreement, or (iii) the value of the Property. (f) Seller is a Washington municipal corporation. This Agreement and all documents executed by Seller that are to be delivered to Buyer at closing are, or at the time of closing will be, (i) duly authorized, executed and delivered by Seller, (ii) legal, valid and binding obligations of Seller, (iii) sufficient to convey title (if they purport to do so), and (iv) in compliance with all provisions of all agreements and judicial orders to which Seller is a party or to which Seller or all or any portion of the Property is subject. (g) Other than the Property, there are no items, tangible or intangible, real or personal, owned by Seller or any affiliate of Seller, now or at any time used in conjunction with the Property or any portion thereof. (h) Seller has received no notice of any failure of Seller to comply with any applicable governmental -requirements in respect of the use, occupation and construction of the Property, including, but not limited to, environmental, fire, health, safety, zoning, subdivision and other land use requirements that have not been corrected to the satisfaction of the appropriate governmental authority, and Seller has received no notice of, and has no knowledge of, any violations or investigation relating to any such governmental requirement. Page 10 of 19 Page 179 of 202 Back to Agenda (i) Seller has received no notice of any default or breach by Seller under any covenants, conditions, restrictions, rights of way or easements that may affect Seller in respect to the Property or may affect the Property or any portion thereof and no such default or breach now exists. (j) No building or other improvement encroaches on the real property, nor does any building or improvement that is a part of the real property encroach on lands of others or any public or private road or right of way. (k) There are no leases affecting any part of the Property and there are no written or oral promises, understandings or agreements between Seller and any tenant or occupant of the Property that have not been disclosed by Seller as part of the materials provided by Buyer. (1) To Seller's knowledge there are no permits, licenses or consents required by any governmental authority in connection with the use and occupancy of the Property except those previously obtained by Seller and delivered to Buyer, and Seller knows of no local improvement districts proposed which will affect the Property. (m) Except as disclosed in writing by Seller to Buyer, the Property is not affected by any statute or governmental regulation of any kind that limits the right to increase rents, requires the renewal of leases or grants a right to purchase to any tenant. (n) All public utilities required for the operation of the Property either enter the Property through adjoining public streets or, if they pass through adjoining private lands, do so in accordance with valid public easements or private easements that will inure to the benefit of Buyer on the Closing Date. (o) Capacity within the water and sewer systems beyond that which was associated with the previous building and use may be reserved by applying for water and sewer concurrency pursuant to POMC 20.180. (p) Seller is not a foreign person as defined in Section 1445 of the Internal Revenue Code. (q) All of the representations, warranties and covenants of Seller contained in this Agreement are true and correct as of the Effective Date and as of the Closing Date and will survive the closing of the transaction contemplated by this Agreement. 9.2 Buyer's representations and warranties. Buyer represents and warrants to Seller as follows: (a) Buyer is a Washington limited liability company, duly organized and validly existing under the laws of the state of Washington; this Agreement and all documents executed by Buyer that are to be delivered to Seller at closing are, or at the time of closing will be (i) duly authorized, executed and delivered by Buyer, (ii) legal, valid and binding obligations of Buyer, and (iii) in compliance with all provisions of all agreements and judicial orders to which Buyer is a party or to which Buyer is subject. Page 11 of 19 Page 180 of 202 Back to Agenda (b) In connection with its Due Diligence, Buyer will inspect those aspects of the Property, including, without limitation, its physical condition, that Buyer deems necessary in order to make a determination whether to purchase the Property. (c) As of the date of this Agreement, Buyer is not aware of any default by Seller of any representation or warranty set forth in this Agreement. 10. Hazardous Materials. 10.1 Definitions. 10.1.1 Definition of "Environmental Laws". "Environmental Laws" means any federal, state or local laws, ordinances, permits or regulations, or any common law, regarding health, safety, radioactive materials or the environment, each as amended, and any regulations promulgated thereunder, guidance and directives issued with respect thereto, or policies adopted by the applicable authorities thereunder. 10.1.2 Definition of "Hazardous Materials". "Hazardous Materials" means: (i) any radioactive materials; (ii) any substance or material the transportation, storage, treatment, handling, use, removal or release of which is subject to any Environmental Law; or (iii) any substance or material for which standards of conduct are imposed under any Environmental Law. Without limiting the generality of the foregoing, "Hazardous Materials" includes: asbestos and asbestos -containing materials (whether or not friable); urea -formaldehyde in any of its forms; polychlorinated biphenyls; oil, used oil; petroleum products and their by- products; lead -based paint; radon; and any substances defined as "hazardous waste," "hazardous substances," "pollutants or contaminants," "toxic substances," "hazardous chemicals," "hazardous pollutants," or "toxic chemicals "under any law, statute, ordinance or regulation governing environmental matters or hazardous materials. 10.2 Compliance with Environmental Laws. Seller represents and warrants that: (a) Seller has no actual knowledge of the release or presence of any Hazardous Material on, in, from or onto the Real Property; (b) Seller hasnot generated, manufactured, refined, transported, stored, handled, disposed of or released any Hazardous Materials on the Property, nor has Seller permitted the foregoing; (c) To the best of Seller's actual knowledge, Seller has obtained all approvals and caused all notifications to be made as required by Envirommental Laws; (d) To the best of Seller's actual knowledge, Seller has not received any notice of any violation of any Environmental Laws; (e) To the best of Seller's actual knowledge, no action has been commenced or threatened regarding Seller's compliance with any Environmental Laws; Page 12 of 19 Page 181 of 202 Back to Agenda (f) To the best of Seller's actual knowledge, no tanks used for the storage of any Hazardous Materials above or below ground are present or were at any time present on or about the Real Property; and (g) To the best of Seller's actual knowledge, no action has been commenced or threatened regarding the presence of any Hazardous Materials on or about the Real Property. 10.3 No waiver of liability. Seller has not released or waived and will not release or waive the liability of any previous owner, lessee or operator of the Real Property or any party who may be potentially responsible for the presence or removal of Hazardous Materials on or about the Real Property. Seller has made no promises of indemnification regarding Hazardous Materials to any party. 10.4 Environmental inspection. A Phase I Environmental Assessment was prepared by the Seller and is available to the Buyer upon request. During the Due Diligence Period, Buyer will have the right to take soil and water samples (including groundwater samples) from the Real Property, and to test and analyze those samples to determine the extent of any contamination of the soils and water (including groundwater) on or about the Real Property. If, based on the results of those inspections and/or tests, Buyer determines that the condition of the Real Property is unsatisfactory or if Buyer believes that its ownership of the Real Property would expose Buyer to undue risks of government intervention or third -party liability, Buyer may, without liability, cancel the purchase of the Property and terminate this Agreement. 11. Casualty Loss. Following the occurrence of any event prior to the Closing Date, causing damage to or destruction of the Property or any portion of the Property, Seller shall promptly notify Buyer of such occurrence. Under any such circumstances the provisions of this Section 11 will apply. 11.1 Minor casualty loss. If the amount of any casualty loss referred to above in this Section 11 is not more than Five Hundred Dollars ($500.00), the obligation of each party under this Agreement will continue, notwithstanding any such casualty, the rights to all insurance proceeds collectively by reason of such loss and not collected prior to closing will at closing be assigned to Buyer, and the Purchase Price will be paid without reduction by reason of such loss. Buyer and Seller will under such circumstances cooperate in settlement of such claims and any proceeds collected prior to closing will, consistent with the circumstances, be applied to any reconstruction or be offset against the portion of the Purchase Price paid at closing. 11.2 Substantial casualty loss. If the amount of any casualty loss is more than Five Hundred Dollars ($500.00), Buyer and Seller will each have the right to terminate this Agreement in the manner specified by this Section 11.2. Such election may be exercised only by the parry so electing to terminate giving written notice of termination to the other party within thirty (30) days after receipt of actual notice of such casualty loss. Such notice of casualty will be effective to commence the running of this termination period only if such notice specifically provides that it is being given pursuant to this Section 11.2. Upon effective exercise of such termination election by either party, this Agreement will terminate, and the Earnest Money will be returned to Buyer. If, in the event of any such casualty, neither party affirmatively exercises Page 13 of 19 Page 182 of 202 Back to Agenda the right to terminate provided for by this Section 11.2, such right will lapse, and the provisions of Section 11.1 above will apply. 11.3 Eminent domain. If at any time after the Effective Date, Seller receives any notice of any condemnation proceedings, or other proceedings in the nature of eminent domain, it will promptly send a copy of such notice to Buyer. If all or any part of the Property is taken by condemnation or eminent domain and the value of the portion of the Property so taken exceeds Five Hundred Dollars ($500.00), Buyer may, upon written notice to Seller, elect to terminate this Agreement, and in such event all monies theretofore paid on account must be returned to Buyer, and neither party will have any further liability or obligation under this Agreement. If all or any portion of the Property has been or is hereafter condemned or taken by eminent domain and this Agreement is not canceled, Seller's right, title and interest in and to any awards in condemnation or eminent domain, or damages of any kind, to which Seller may have become entitled or may thereafter be entitled by reason of any exercise of the power of condemnation or eminent domain with respect to the Property or any portion thereof. 12. Possession. Seller shall deliver possession of the Property to Buyer on the Closing Date. 13. Events of Default. 13.1 By Seller. If there is an event of default under this Agreement by Seller (including a breach of any representation, warranty or covenant), Buyer will be entitled (a) in addition to all other remedies available at law or in equity, to seek specific performance of Seller's obligations under this Agreement or (b) to terminate this Agreement by written notice to Seller and Escrow Agent. If Buyer terminates this Agreement, the escrow will be terminated, the entire Deposit must immediately be returned to Buyer, all documents will be immediately returned to the party who deposited them, and neither party will have any further rights or obligations under this Agreement, except as otherwise provided in this Agreement except that Seller shall pay any costs of terminating the escrow and any cancellation fee for the Preliminary Commitment. 13.2 By Buyer. IN THE EVENT BUYER FAILS, WITHOUT LEGAL EXCUSE, TO COMPLETE THE PURCHASE OF THE PROPERTY, THE EARNEST MONEY DEPOSIT MADE BY BUYER WILL BE FORFEITED TO SELLER AS THE SOLE AND EXCLUSIVE REMEDY AVAILABLE TO SELLER FOR SUCH FAILURE. M Seller's Initials Bu ' nitials 14. Notices. Any notice under this Agreement must be in writing and be personally delivered, delivered by recognized overnight courier service or given by mail or via facsimile. Any notice given by mail must be sent, postage prepaid, by certified or registered mail, return receipt requested. All notices must be addressed to the parties at the following addresses or at such other addresses as the parties may from time to time direct in writing: Seller: City of Port Orchard ATTN: Mayor Robert Putaansuu 216 Prospect Street Page 14 of 19 Page 183 of 202 Back to Agenda Port Orchard, WA 98366 with a copy to: Office of the City Attorney Sharon Cates Lighthouse Law Group PLLC 600 Stewart Street, Suite 400 Seattle, WA 98101 Buyer: Waterman Investment Partners, LLC P.O. Box 376 Burley, WA 98322 with a copy to: Ron Templeton Templeton Horton Weibel 3212 NW Byron Street, #104 Silverdale, WA 98383 Any notice will be deemed to have been given, if personally delivered, when delivered, and if delivered by courier service, one business day after deposit with the courier service, and if mailed, two business days after deposit at any post office in the United States of America, and if delivered via facsimile or electronic mail, the same day as verified, provided that any verification that occurs after 5:00 p.m. on a business day, or at any time on a Saturday, Sunday or holiday, will be deemed to have occurred as of 9:00 a.m. on the following business day. 15. Brokers and Finders. Neither party has had any contact or dealings regarding the Property, or any communication in connection with the subject matter of this transaction, through any licensed real estate broker or other person who can claim a right to a commission or finder's fee as a procuring cause of the purchase and sale contemplated by this Agreement. If any broker or finder perfects a claim for a commission or finder's fee based upon any other contract, dealings or communication, the party through whom the broker or finder makes his or her claim will be responsible for that commission or fee and shall indemnify, defend and hold harmless the other party from and against any liability, cost or damages (including attorneys' fees and costs) arising out of that claim. 16. Amendments. This Agreement may be amended or modified only by a written instrument executed by Seller and Buyer. 17. Continuation and Survival of Representations and Warranties. All representations and warranties by the respective parties contained in this Agreement or made in writing pursuant to this Agreement are intended to and will remain true and correct as of the time of Closing, will be deemed to be material and will survive the execution and delivery of this Agreement and the delivery of the Deed and transfer of title for a period of twelve (12) months. Such representations and warranties, however, are not assignable and do not run with the land, except as may be expressly provided herein or contained in a written instrument signed by the party to be charged. Page 15 of 19 Page 184 of 202 Back to Agenda 18. Governing Law. This Agreement will be governed by and construed in accordance with the laws of the state of Washington. 19. Entire Agreement. This Agreement and the exhibits to it constitute the entire agreement between the parties with respect to the purchase and sale of the Property, and supersede all prior agreements and understandings between the parties relating to the subject matter of this Agreement. 20. Attorney's Fees. If either party fails to perform any of its obligations under this Agreement or if a dispute arises concerning the meaning or interpretation of any provision of this Agreement, the defaulting party or the party not prevailing in the dispute, as the case may be, shall pay any and all costs and expenses incurred by the other party in enforcing or establishing its rights under this Agreement, including, without limitation, court costs and reasonable attorney fees incurred in connection with any federal, state or bankruptcy court proceeding. 21. Time of the Essence. Time is of the essence of this Agreement. 22. Exclusivity. Seller shall not market the Property actively until after the expiration of the Due Diligence Period and then only if Buyer elects not to proceed with the purchase of the Property. 23. Waiver. Neither Seller's nor Buyer's waiver of the breach of any covenant under this Agreement will be construed as a waiver of the breach of any other covenants or as a waiver of a subsequent breach of the same covenant. 24. Nonmerger. The terms and provisions of this Agreement, including, without limitation, all indemnification obligations, will not merge in, but will survive, the closing of the transaction contemplated under this Agreement. 25. Assignment. Buyer shall not assign this Agreement without Seller's prior written consent, which consent may not be unreasonably withheld or delayed. Seller shall consent to an assignment of this Agreement to (i) the parent of Buyer, or to a wholly -owned subsidiary of Buyer or of such parent, or (ii) to any corporation or other entity with which Buyer may be merged or consolidated, provided that the net worth of the resulting corporation is at least equal to the net worth of Buyer as of the Effective Date. 26. Negotiation and Construction. This Agreement and each of its terms and provisions are deemed to have been explicitly negotiated between the parties, and the language in all parts of this Agreement will, in all cases, be construed according to its fair meaning and not strictly for or against either party. 27. Calculation of Time Periods. Unless otherwise specified, in computing any period of time described in this Agreement, the day of the act or event after which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is a Saturday, Sunday or legal holiday. The final day of any such period will be deemed to end at 5 p.m., Pacific Time. Page 16 of 19 Page 185 of 202 Back to Agenda 28. Section 1031 Exchange. Each party agrees to cooperate with the other and/or the other's principals in effectuating a like -kind exchange under Section 1031 of the Internal Revenue Code. Each party shall execute such documents as may be necessary or appropriate to assist with a contemporaneous or deferred exchange arrangement requested by the other on the conditions that the non -requesting party will have no liability whatsoever in connection with such exchange, the non -requesting party will not be required to incur any expense in connection therewith and that the requesting party indemnifies and holds the non -requesting party harmless from any such liability or expense, including all of the non -requesting party's costs and attorney fees related thereto. 29. Recitals and exhibits. The Recitals and Exhibits are incorporated into this Agreement by this reference. 30. Counterparts. This agreement may be signed in counterparts, any of which shall be deemed an original. 31. Date. This Agreement is made this I O'h day of July 2018. SELLER: City of Port Orchard, a municipal corporation of the State of Washington )A-11� Robert Putaansuu, Mayor ATTEST/AUTHENTICATE: Bra dy nearson, Z�M�M�C City Clerk' APPROVED AS TO FORM: S o Cates, City Attorney' BUYER: Waterman Investment Partners, LLC Steve Sego; ole ember Page 17 of 19 Page 186 of 202 Back to Agenda STATE OF WASHINGTON ) ss COUNTY OF KITSAP On this , r � day of , 2018, before me, the undersigned, a Notary Public in and for the State of Washington, d ly commissioned and sworn, personally appeared Robert Putaansuu, to me known to be the Mayor of the City of Port Orchard, the Washington municipal corporation that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute the said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. in and for said state, residing at 110- Y U ML1 f2 My commission expires: Print Name:. )P n i n , STATE OF WASHINGTON ) ss COUNTY OF !( f - 'k \%ion01 E A. OF'WAS�;� \\�� On this /q*day of ui , 2018, I certify that I know or have satisfactory evidence that Steve Sego is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument on behalf of Waterman Investment Partners, LLC, referenced herein, and acknowledged it to be his free and voluntary act for the uses and purposes mentioned in the instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. KiMBERLY A HANSEN Not �.�yycPublic for said state, residing NOTARY PUBLIC at f'S eotT rl STATE OF WASHINGTON My commissio�ny xpires: / �,Zr?-� COMMISSION EXPIRES Print Name: Ki4ldOCTOBER 29, 2021 Page 18 of 19 Page 187 of 202 Back to Agenda EXHIBIT A Legal Description EXHIBIT B — Property Depiction EXHIBIT LIST Page 19 of 19 Page 188 of 202 Back to Agenda Exhibit A RESULTANT PARCEL 1 OF BOUNDARY LINE ADJUSTMENT RECORDED UNDER AUDITOR'S FILE NO. 201510130176, AND AS DEPICTED ON SURVEY RECORDED UNDER AUDITOR'S FILE NO. 201510130175, IN VOLUME 81 OF SURVEYS, PAGE 145, RECORDS OF KITSAP COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS: THE SOUTHEASTERLY HALF OF LOT 6, BLOCK 9, S.M. STEVENS' TOWN PLAT OF SIDNEY, ACCORDING TO PLAT RECORDED IN VOLUME 1 OF PLATS, PAGES 1 AND 2, IN KITSAP COUNTY, WASHINGTON; EXCEPT THE SOUTHWESTERLY 3 FEET THEREOF; ALSO EXCEPT THE NORTHWESTERLY 5 FEET THEREOF; TOGETHER WITH ALL OF LOT 7, BLOCK 9, S.M. STEVENS' TOWN PLAT OF SIDNEY, ACCORDING TO PLAT RECORDED IN VOLUME 1 OF PLATS, PAGES 1 AND 2, IN KITSAP COUNTY, WASHINGTON. Page 189 of 202 Back to Agenda i-001 1-004 005.00 05"00 N )01.03 Exhibit B 001-00 001-00 Page 190 of 202 Back to Agenda City of Port Orchard Council Meeting Minutes Work Study Session Meeting of November 20, 2018 CALL TO ORDER AND ROLL CALL Mayor Robert Putaansuu called the meeting to order at 6:30 p.m. Roll call was taken by the Deputy City Clerk as follows: Councilmember Ashby Present Councilmember Chang Absent Councilmember Clauson Absent Councilmember Cucciardi Present Mayor Pro-Tem Diener Present Councilmember Lucarelli Present Councilmember Rosapepe Present Mayor Putaansuu Present Staff present: Public Works Director Dorsey, Finance Director Crocker, Community Development Director Bond, City Attorney Cates, Deputy City Clerk Floyd and Office Assistant Whisenant. Pledge of Allegiance Mayor Putaansuu led the audience and Council in the Pledge of Allegiance. 1. Annapolis Creek Culvert Replacement Project Public Works Director Dorsey introduced the presenters with Reid Middleton and GeoEngineers and briefed the topic of the Annapolis Creek Culvert Replacement Project. Emphasizing the importance of the narrative that will be decided upon with the project. Ken Anderson, with Reid Middleton, explained the goals and objectives for the project as: • Assessment of the existing drainage system; • Evaluate the existing conditions; • Identify problems; and • Develop improvement options with construction costs. Throughout the presentation, the following was outlined by Julian Dodge with Reid Middleton, and both Shaina Sabatine and Joe Callahan with GeoEngineers: • Described the existing conditions and history of problems; Page 191 of 202 Back to Agenda Minutes of November 20, 2018 Page 2 of 5 • Drainage study, hydrology/hydraulics, findings; • Geotechnical evaluation, structural requirements; • Environmental issues and permitting; and • Alternative solutions and cost. Ms. Sabatine detailed the potential flooding and impact to the area depending on the flood types, tides, rainfall, location, and possible replacement solutions. Presenters, staff, Mayor, and Councilmembers discussed the current situation of the homeowners, location of the homes, the flooding impacts, potential solutions, funding and other government agency involvement. Commissioner Garrido stated that she would welcome the opportunity to discuss this further. Council Direction: No direction was given to staff. 2. Kitsap County Courthouse Feasibility and Space Needs Assessment Mayor Putaansuu invited the presenters forward from the Kitsap County Courts and briefed the topic of the next steps in their space needs assessment. Karen Goon introduced Commission Garrido, Angie Silva, and Architect Ron Thomas to discuss the findings of the feasibility study and moving forward on what they are calling the 'super block' from streets Cline to Sidney and Division to Taylor. Since meeting with Council previously in August, a fifth design option has been generated, which is what they presented. Ron Thomas, with Thomas Architecture Studios, presented the space needs assessment as projected out the needs of the court rooms and parking needed through the next 30-years. Initial phase would be to resolve the parking issue, and then on to court and administration needs. The site plan with the phase structure was shown and explained. Councilmember, Ron Thomas, and Karen Goon discussed the phases and the timeline for initiating the project. Council Direction: No direction was given to staff. 3. Community Service Program Mayor Putaansuu explained the current and future costs of Kitsap Community Resources, as they are asking for a 20% annual increase. In review of the program, it was found that it isn't utilized often. Page 192 of 202 Back to Agenda Minutes of November 20, 2018 Paee 3 of 5 However, public works values the program as the community service workers are assigned tasks that otherwise the public works crew would have to complete. Judge Tim Drury discussed the court's task of utilizing the community service program versus fines or jail time. Mayor Putaansuu explained the process if the community service program is taken on by the City. Also, asked to turn the recently budgeted .60 a FTE (full time employee) public works park position to a 1.0 FTE by adding meter reading and community service work. Staff, judge, Mayor, and Councilmembers discussed possible downfalls or potential benefits in the various options for court findings. Council Direction: No direction was given to staff. 4. POMC 10.12 Proposed Changes and Updates Public Works Director Dorsey sectioned out the proposed changes and discussed why they are being presented. Mayor Putaansuu, Chief Marti, and Public Works Director Dorsey discussed in order to enforce Etta Turner Park parking location and concerns that parking stalls and city code need to be defined and uphold the agreement with the parking lot tenant. Chief Marti emphasized that if the parking lot tenant's concern is that of non -business patron vehicles parking in the lot, then the police department can enforce that issue separately. Council Direction: Staff to bring to next Council meeting for approval. 5. Disbursement of Funds Resolution and Policies Finance Director Crocker handed out a draft resolution, laid out the details of policies, and showed the diagram of accounts payable. The draft resolution and policy would delegate the finance department to issue payments, dependent on business need and would then bring to council. Will be on the agenda for next week if council is in support of bringing forward. Mayor, staff and councilmembers discussed payment authorizations and how this policy would be mimicking the State Auditors current practice. Council Direction: Staff is to bring forward to the next council meeting. 6. 2019/2020 Biennial Budget Questions/Comments Page 193 of 202 Back to Agenda Minutes of November 20, 2018 Page 4 of 5 Mayor Putaansuu mentioned that the Anderson Hill Roundabout Project was not funded, although this would not impact the budget. Councilmember Cucciardi also updated the Council on discussions at the Finance Committee meeting held prior to the work study meeting. Finance Director Crocker informed that the final budget amendments will be brought forward by end of the fiscal year. Council Direction: Staff was directed to move forward. 7. Amendment to POMC Chapter 3.48, Multifamily Property Tax Exemption Community Development Director Bond gave the background on the exemption and stated that so far only one developer had utilized the exemption. There has been a request placed by developer Robert Graham, but that would require an amendment to the current exemption. Staff is proposing two options; go with exactly as previously presented, or alternative would be to make downtown an exception. Mayor Putaansuu stated that previously there wasn't enough outreach to other agencies and suggested a conversation be held with the fire department, as it impacts them. Mayor, Councilmembers and staff discussed the positive impacts of the growth. However, the housing market is showing signs of slowing down and there may be a limited window of opportunity for these types of projects. Community Development Director Bond informed of housing costs and affordability calculations. Mayor Putaansuu asked how the Councilmembers would like the Fire Chief to be involved, to which it was decided that the Mayor would talk to him separately. Council Direction: Mayor to reach out to Fire Chief and staff to move forward with scheduling hearing, depending on discussion with fire department. OTHER ITEMS DISCUSSED: Councilmembers and Mayor discussed in more depth the Kitsap County Courthouse Feasibility and Space Needs Assessment agenda item. Updates were given on Tremont Street Widening Project. Page 194 of 202 Back to Agenda Minutes of November 20, 2018 Page 5 of 5 McCormick Woods Park concerns will be discussed in Mayor's report at next council meeting. ADJOURNMENT The meeting adjourned at 8:43 p.m. No other action was taken. Audio/Visual was successful. Jenine Floyd, CIVIC, Deputy City Clerk Robert Putaansuu, Mayor Page 195 of 202 Back to Agenda This Page Intentionally Left Blank Page 196 of 202 Back to Agenda City of Port Orchard Council Meeting Minutes Regular Meeting of November 27, 2018 1. CALL TO ORDER AND ROLL CALL Mayor Putaansuu called the meeting to order at 6:30 p.m. Roll call was taken by the City Clerk as follows: Councilmember Ashby Present Councilmember Chang Absent Councilmember Clauson Present Councilmember Cucciardi Absent Councilmember Diener Present Councilmember Lucarelli Present Councilmember Rosapepe Present Mayor Putaansuu Present Staff present: Public Works Director Dorsey, Finance Director Crocker, Community Development Director Bond, City Attorney Cates, Police Chief Marti, City Clerk Rinearson, and Deputy City Clerk Floyd. A. PLEDGE OF ALLEGIANCE Mayor Putaansuu led the audience and Council in the Pledge of Allegiance. 2. APPROVAL OF AGENDA MOTION: By Councilmember Ashby, seconded by Councilmember Diener, to add to the consent agenda as 4F, the excusal of Councilman Chang due to personal obligations. The motion carried. MOTION: By Councilmember Clauson, seconded by Councilmember Diener, to remove item 4C off the consent agenda and put it with the business items[7F]. The motion carried. MOTION: By Councilmember Diener, seconded by Councilmember Ashby, to approve the agenda as amended. The motion carried. Page 197 of 202 Back to Agenda Minutes of November 27, 2018 PaRe2of6 3. CITIZENS COMMENTS Bob Hampton, owner of Westbay Center, asked the Council to reconsider parking lot restrictions that have been initiated in the Etta Turner Park as these restrictions violate the terms of a development agreement that he has with the City. He voiced his concerns regarding access and parking. 4. CONSENT AGENDA A. Approval of Check Nos. 75621 through 75677 totaling $432,416.34. B. Approval of the November 13, 2018 Council Meeting Minutes (FdiRaTEePie. * * ) D. Adoption of a Resolution Adopting the Lodging Tax Advisory Committee's Recommendation for 2019 Funding Allocation (Resolution No. 051-18) E. Excusal of Councilmember Cucciardi Due to Business Obligations F. New item: Excusal of Councilmember Chang Due to Personal Obligations MOTION: By Councilmember Clauson, seconded by Councilmember Lucarelli, to approve the consent agenda as modified. The motion carried. A. 640 Bay Street Mayor Putaansuu noted we entered into an agreement with Waterman Partners for the 640 Bay Street project. The purchase and sale of this property is close to coming to an end. Steve Sego, Waterman Partners, thanked the Mayor and Council for their time, and showed a presentation on the updates to the 640 Bay Street project. Most notably, a petition to the Public Facilities District to fund this as a downtown waterfront community center. He asks Council to consider a letter of support to the Public Facilities District for this project and also requests a six- month extension on closing. Mike Brown and Wes Larson, Sound West Group, explained why Sound West is interested in the project and how it has the potential to be a game changer and start a different trend in downtown Port Orchard. Mayor and Council discussed Mr. Sego's requests and asked about parking, timelines, and budget. Page 198 of 202 Back to Agenda Minutes of November 27, 2018 PaRe3of6 6. PUBLIC HEARING A. 2019-2020 Biennial Budget Mayor Putaansuu opened the public hearing, and there being no testimony, closed the public hearing at 7:16 p.m. 7. BUSINESS ITEMS A. Adoption of an Ordinance Adopting the 2019-2020 Biennial Budget MOTION: By Councilmember Clauson, seconded by Councilmember Ashby, to adopt an Ordinance adopting the 2019 — 2020 Biennial Budget. Councilmember Ashby stepped away during the vote. The motion carried. (Ordinance No. 36-18) B. Adoption of a Resolution Adopting the Disbursement of Funds Policy and Procedures MOTION: By Councilmember Clauson, seconded by Councilmember Lucarelli, to adopt a Resolution adopting the Disbursement of Funds Policy and Procedures. The motion carried. (Resolution No. 050-18) C. Approval of Amended Change Order No. 2 to Contract No. 037-17 with Active Construction Inc., for the Tremont Street Widening Project MOTION: By Councilmember Lucarelli, seconded by Councilmember Clauson, to authorize the Mayor to execute the amended Change Order No. 2 with Active Construction, Inc. in an amount not to exceed $128,694.37. The motion carried. D. Approval of Change Orders No. 8, 9, 10, and 11 to Contract No. 037-17 with Active Construction, Inc. for the Tremont Street Widening Project MOTION: By Councilmember Clauson, seconded by Councilmember Diener, to authorize the Mayor to execute Change Order's No. 8 through No. 11 with Active Construction, Inc. in an amount not to exceed $446,251.62. Page 199 of 202 Back to Agenda Minutes of November 27, 2018 Page 4 of 6 The motion carried. E. Discussion: Letters of Support for Public Facilities District Projects Mayor Putaansuu said the Public Facilities District is meeting next week. Last summer we provided a letter of support to them for the racetrack, and he hopes we will continue to support this project. He is asking the Council to authorize him to write two letters of support; one for the continual support of the racetrack, and one for the Port Orchard Community Center. MOTION: By Councilmember Diener, seconded by Councilmember Clauson, to support 2 letters of support for the Public Facilities District including the Port Orchard Community Center and the Bremerton Racing Project. Council discussed their support and concerns for the projects and letters of support. The motion carried. F. Adoption of an Ordinance Amending Port Orchard Municipal Code Chapter 10.12 Establishing Regulations and Fees Related to Parking, Stopping, or Standing in Certain Areas of the City Public Works Director explained the updates to the Ordinance and said this was also discussed at the work session. Police Chief Marti noted there has been ongoing issues with some individuals and their vehicles/trailers at Etta Turner Park. He has been receiving complaints from citizens and business owners about this area due to unrestricted parking which creates an isolated area, concealed from the public eye. It is a public safety issue to have cars parked along that curb line where you cannot see what is going on at the park. Councilmember Clauson said with this action we are reducing the ability for people to come down and take advantage of the park. He asked about video surveillance of this area if it is an option. We need to come up with a better solution to this problem. MAIN MOTION: By Councilmember Diener, seconded by Councilmember Lucarelli, to adopt an Ordinance, thereby adopting [updating] POMC Chapter 10.12.500, 10.12.560, 10.12.580 and 10.12.640 regarding parking, stopping, or standing, in certain areas of the City, with final form approved by the City Attorney. Councilmember Clauson would support pulling the Etta Turner Park parking portion out of the ordinance, so it could be studied further and see if there are other options. Page 200 of 202 Back to Agenda Minutes of November 27, 2018 PaRe5of6 AMENDED MOTION: By Councilmember Clauson, seconded by Councilmember Diener, to delete paragraph K and any others that reference the parking along Etta Turner Park. The amended motion carried. The main motion carried. (Ordinance No. 035-18) 8. REPORTS OF COUNCIL COMMITTEES Finance Director Crocker said we can schedule a Finance Committee meeting in December if there are any significant final budget amendments before the end of the year. Councilmember Ashby reported the Economic Development and Tourism Committee meeting is scheduled for December 101". The Kitsap Regional Coordinating Council (KRCC) Legislative Reception is scheduled for this Thursday. Councilmember Lucarelli reported the Utilities Committee meeting is scheduled for December 17tn The Sewer Advisory Committee meeting is scheduled for January 161". The Chimes & Lights Committee meeting is scheduled for December 171n Mayor Putaansuu and Councilmember Clauson mentioned the Kingston Fast Ferry service. 9. REPORT OF MAYOR Mayor Putaansuu reported on the following: • Kitsap County's Grant Recommendation Committee; • Jedi's special day; • Resolution next meeting for Kitsap Transit at large position. Councilmember Ashby volunteered Councilmember Rosapepe; • New trees in Clayton park; • Ribbon cutting ceremonies for the McCormick Village Park and Bay Street Pathway are postponed; and • Police Chief and Kitsap Community Resources contract updates. 10. REPORT OF DEPARTMENT HEADS Public Works Director Dorsey reported we did not receive funding from the Transportation Improvement Board for the SW Old Clifton Road/Anderson Hill Road roundabout; gave an update on the Tremont Widening project and Bay Street; and Jedi's special day. Page 201 of 202 Back to Agenda Minutes of November 27, 2018 Page 6 of 6 Community Development Director Bond reported on updates to the City's zoning code. City Attorney Cates reported on the small cell ordinance and new rules which go into effect in January. Police Chief Marti reported the issue at Etta Turner Park is a priority for him. In response to Councilmember Lucarelli, Mayor Putaansuu said they will be discussing the Holiday Light Tour. 11. CITIZENS COMMENTS Sue Whitford, Kitsap Regional Library, and Kathleen Wilson, Port Orchard Library, are excited for the community center proposal. Mike Brown thanked the Mayor and Council for their support of the community center and said comments regarding public outreach and transparency are duly noted. 12. EXECUTIVE SESSION At 8:21 p.m., Mayor Putaansuu recessed the meeting for a 15-minute executive session to discuss a potential litigation matter pursuant to RCW 42.30.110(1)(i). City Attorney Cates, Public Works Director Dorsey, and Community Development Director Bond were invited to attend. At 8:36 p.m., Mayor Putaansuu extended the executive session for an additional 15 minutes. At 8:51 p.m., Mayor Putaansuu reconvened Council back into regular session. 13. ADJOURNMENT The meeting adjourned at 8:51 p.m. No other action was taken. Audio/Visual was successful. Brandy Rinearson, MMC, City Clerk Robert Putaansuu, Mayor Page 202 of 202